Live cattle traded with losses to start the short week but posted strong gains after the Christmas Holiday. Feeder cattle traded mixed before Christmas but rallied to post strong gains after the Christmas Holiday. Thin light trading was evident.
Cattle opened the short week with each contract going in their own direction. Live cattle started the week on the defense while feeder cattle pushed higher. Live cattle opened lower and continued to fade throughout the day. Feeder cattle opened higher and held onto gains for most of the session. The lack of a cash trade pressured the live cattle market. Feeder cattle were supported by Friday’s neutral to friendly COF report, which continues to show tight cattle supplies.
Selling took control of the cattle market on Tuesday as traders attempted to do some last-minute position squaring ahead of Christmas. Dec live cattle continue to be tied to cash, as this contract is set to expire soon. The deferred contracts were supported by the need to bring the front month Dec and deferred months closer together. Expectations that domestic demand will increase after the first of the year added support. Feeder cattle were pressured by expectations that the border between US and Mexico will open soon, creating a rush of cattle to cross in the short term (to get ahead of potential tariffs). Feeder cattle also saw pressure from the higher corn market.
By the looks of the cattle market on Thursday, traders must have had a good Christmas. Cattle opened the session higher and extended gains throughout the day. Live cattle saw early support from expectations that packers will be forced to come to town to buy product to fill the rest of the week’s slaughter run. Feeder cattle were supported by tight supplies and the expectation that supplies will remain tight for the remainder of the year. Expectations that tariffs will be placed on Canada and Mexico once the new administration takes office added support was it will reduce supplies. Technical buying added support as both live cattle and feeder cattle attempt to test resistance.
Cattle are back up to the top of their recent trading range and once again look toppy. Now would be a good time to put a floor under calves, both unborn and in the feedlot.
For the week, Dec live cattle were at $193.50 up $2.175. Jan feeder cattle were at $261.375 up $5.775.
Cattle Weekly Comments Dec 27
Cattle Weekly Comments Dec 27
Live cattle traded with losses to start the short week but posted strong gains after the Christmas Holiday. Feeder cattle traded mixed before Christmas but rallied to post strong gains after the Christmas Holiday. Thin light trading was evident.
Cattle opened the short week with each contract going in their own direction. Live cattle started the week on the defense while feeder cattle pushed higher. Live cattle opened lower and continued to fade throughout the day. Feeder cattle opened higher and held onto gains for most of the session. The lack of a cash trade pressured the live cattle market. Feeder cattle were supported by Friday’s neutral to friendly COF report, which continues to show tight cattle supplies.
Selling took control of the cattle market on Tuesday as traders attempted to do some last-minute position squaring ahead of Christmas. Dec live cattle continue to be tied to cash, as this contract is set to expire soon. The deferred contracts were supported by the need to bring the front month Dec and deferred months closer together. Expectations that domestic demand will increase after the first of the year added support. Feeder cattle were pressured by expectations that the border between US and Mexico will open soon, creating a rush of cattle to cross in the short term (to get ahead of potential tariffs). Feeder cattle also saw pressure from the higher corn market.
By the looks of the cattle market on Thursday, traders must have had a good Christmas. Cattle opened the session higher and extended gains throughout the day. Live cattle saw early support from expectations that packers will be forced to come to town to buy product to fill the rest of the week’s slaughter run. Feeder cattle were supported by tight supplies and the expectation that supplies will remain tight for the remainder of the year. Expectations that tariffs will be placed on Canada and Mexico once the new administration takes office added support was it will reduce supplies. Technical buying added support as both live cattle and feeder cattle attempt to test resistance.
Cattle are back up to the top of their recent trading range and once again look toppy. Now would be a good time to put a floor under calves, both unborn and in the feedlot.
For the week, Dec live cattle were at $193.50 up $2.175. Jan feeder cattle were at $261.375 up $5.775.