Live cattle closed with losses each session this week while feeder cattle managed to post gains in one session but closed lower in the other three sessions. Economic concerns weighed heavy on the cattle contracts this week while feeder cattle saw pressure from expectations that the border with Mexico will open soon.
Cattle opened the week higher but faded its gains throughout the session. Early selling was tied to news that US and Mexico have come to an agreement on the protocol for re-opening the border for cattle to reenter the US, but the holdup is waiting for the pens to hold the cattle for treatment and inspection. USDA is estimating the border will re-open in the new year. Live cattle were supported by last week’s strong cash trade. Cash activity was between $195 and $196. A stronger grain complex pressured feeder cattle.
Tuesday’s session had cattle reversing direction in a turnaround Tuesday type action. Live cattle opened the session higher and traded with gains for most of the first half of the session but late session selling stepped in to pull the cattle off their highs. Feeder cattle opened soft but rallied higher, but once the live cattle faded, feeders faded as well. The front month Dec live cattle contract is tied to cash as it is only 14 days from expiration. And the lack of a cash trade pressured cattle late. News that the border will not open before the end of the year combined with a lower corn market to give feeders support. Position squaring ahead of Friday’s COF report added direction.
Selling pressure returned to the cattle markets midweek as live cattle started the session with gains while feeder cattle opened the day with small losses. After trading in a back-and-forth fashion, cattle slipped lower and extended session losses. Early support came from a lower grain complex. Late session pressure came from sell the fact type trading due to the Federal Reserve drop in interest rates. The Fed lower rates .25% but the real negative news came in Powell’s comments after the announcement. The Fed is only looking at lower rates 2 times in 2025, down from their earlier estimate of 4 reductions. Selling was also tied to the lower Dow Jones, which has closed lower for 10 straight sessions.
To close out the week ending Thursday, cattle opened the session steady to firm but quickly turned lower and extended session losses. Economic concerns tied to a lower Dow and higher dollar added pressure. A steady to lower cash trade added pressure to the live cattle. Last week’s beef export sales pace was estimated at 11,583 MT, which was a three-week low. A higher corn market added pressure to the feeder cattle.
The Dec COF report was close to expectations with the on feed and placement estimated as expected while the friendly part of the report showed marketing 1% above expectations. Estimates were On Feed at 100% (as expected), Placements at 96% (as expected), and Marketing at 99% (1% above expectations).
For the week, Dec live cattle were at $191.325 down $2.325. Jan feeder cattle were at $255.60 down $2.05.
Cattle Weekly Comments Dec 20
Cattle Weekly Comments Dec 20
Live cattle closed with losses each session this week while feeder cattle managed to post gains in one session but closed lower in the other three sessions. Economic concerns weighed heavy on the cattle contracts this week while feeder cattle saw pressure from expectations that the border with Mexico will open soon.
Cattle opened the week higher but faded its gains throughout the session. Early selling was tied to news that US and Mexico have come to an agreement on the protocol for re-opening the border for cattle to reenter the US, but the holdup is waiting for the pens to hold the cattle for treatment and inspection. USDA is estimating the border will re-open in the new year. Live cattle were supported by last week’s strong cash trade. Cash activity was between $195 and $196. A stronger grain complex pressured feeder cattle.
Tuesday’s session had cattle reversing direction in a turnaround Tuesday type action. Live cattle opened the session higher and traded with gains for most of the first half of the session but late session selling stepped in to pull the cattle off their highs. Feeder cattle opened soft but rallied higher, but once the live cattle faded, feeders faded as well. The front month Dec live cattle contract is tied to cash as it is only 14 days from expiration. And the lack of a cash trade pressured cattle late. News that the border will not open before the end of the year combined with a lower corn market to give feeders support. Position squaring ahead of Friday’s COF report added direction.
Selling pressure returned to the cattle markets midweek as live cattle started the session with gains while feeder cattle opened the day with small losses. After trading in a back-and-forth fashion, cattle slipped lower and extended session losses. Early support came from a lower grain complex. Late session pressure came from sell the fact type trading due to the Federal Reserve drop in interest rates. The Fed lower rates .25% but the real negative news came in Powell’s comments after the announcement. The Fed is only looking at lower rates 2 times in 2025, down from their earlier estimate of 4 reductions. Selling was also tied to the lower Dow Jones, which has closed lower for 10 straight sessions.
To close out the week ending Thursday, cattle opened the session steady to firm but quickly turned lower and extended session losses. Economic concerns tied to a lower Dow and higher dollar added pressure. A steady to lower cash trade added pressure to the live cattle. Last week’s beef export sales pace was estimated at 11,583 MT, which was a three-week low. A higher corn market added pressure to the feeder cattle.
The Dec COF report was close to expectations with the on feed and placement estimated as expected while the friendly part of the report showed marketing 1% above expectations. Estimates were On Feed at 100% (as expected), Placements at 96% (as expected), and Marketing at 99% (1% above expectations).
For the week, Dec live cattle were at $191.325 down $2.325. Jan feeder cattle were at $255.60 down $2.05.