Cattle pushed higher again this week, posting strong gains in 3 of the four sessions for the week ending Thursday. Cattle started the week off posting strong gains in the first two sessions but faded lower during the midweek. Gains returned to close out the week. Live cattle did not have the strength this week that feeder cattle experienced due to the lack of a cash trade.
Cattle opened the week higher across the board and extended session gains early during the first half of the session. Early support continues to come from tight supplies, solid cash offers, and strong demand. Cash bids have seen a sharp increase out in the country once again, and that is pulling futures higher. Reports of two more new world screw worm cases in Mexico added support to the US market as it all but assures that the border will not open soon. Technical buying was also evident as both cattle contracts make a run to test the next level of resistance. The lack of a cash trade pressured live cattle late.
Buying continued to drive the cattle markets Tuesday, except this time live cattle only saw small gains while feeder cattle traded sharply higher. Live cattle faded their gains by midsession, but feeder cattle continued to hold their gains and even extended gains into the close. Live cattle were under pressure from the lack of a cash trade. The COT report shows long liquidation taking place in the live cattle market while feeder cattle are seeing the funds extend their long positions. Tight supplies and strong cash bids at auction sales continue to drive the feeder cattle market higher.
Selling took hold of the cattle markets midweek as profit taking combined with position squaring to pressure cattle. Cattle opened the session lower and extended losses throughout the day. Early selling was tied to spill over pressure from the higher grains. Profit taking after posting strong gains the past three sessions added pressure. Reports Mexico is going to offer zero import tariffs on import quota from Brazil added pressure was it will likely result in Mexico sharply increasing their purchasing of Brazilian beef. Light cash activity added pressure in the live cattle. Reports have a small amount of cattle trading at $232.
Live cattle opened higher but soon turned lower. The market was able to get back on the positive side late in the session and close with decent gains. Feeder cattle gapped higher at the start of the session then turned lower. The market climbed higher late in the session and closed with solid gains that erased all of Wednesday’s losses. Mexico reported that their screwworm cases have dropped 57% since mid-December. A factory for breeding sterile flies in the Chiapas state should be operating in the first half of this year. Beef exports for October were the lowest since 2015 for the month. Technical resistance for the Feb live cattle market is at $241.35 while $361.15 is resistance for Jan feeder cattle.
For the week, February live cattle closed at $233.725 down $2.275. Jan feeder cattle closed at $360.725 up $4.625.
Cattle Weekly Comments January 9
Cattle Weekly Comments January 9
Cattle pushed higher again this week, posting strong gains in 3 of the four sessions for the week ending Thursday. Cattle started the week off posting strong gains in the first two sessions but faded lower during the midweek. Gains returned to close out the week. Live cattle did not have the strength this week that feeder cattle experienced due to the lack of a cash trade.
Cattle opened the week higher across the board and extended session gains early during the first half of the session. Early support continues to come from tight supplies, solid cash offers, and strong demand. Cash bids have seen a sharp increase out in the country once again, and that is pulling futures higher. Reports of two more new world screw worm cases in Mexico added support to the US market as it all but assures that the border will not open soon. Technical buying was also evident as both cattle contracts make a run to test the next level of resistance. The lack of a cash trade pressured live cattle late.
Buying continued to drive the cattle markets Tuesday, except this time live cattle only saw small gains while feeder cattle traded sharply higher. Live cattle faded their gains by midsession, but feeder cattle continued to hold their gains and even extended gains into the close. Live cattle were under pressure from the lack of a cash trade. The COT report shows long liquidation taking place in the live cattle market while feeder cattle are seeing the funds extend their long positions. Tight supplies and strong cash bids at auction sales continue to drive the feeder cattle market higher.
Selling took hold of the cattle markets midweek as profit taking combined with position squaring to pressure cattle. Cattle opened the session lower and extended losses throughout the day. Early selling was tied to spill over pressure from the higher grains. Profit taking after posting strong gains the past three sessions added pressure. Reports Mexico is going to offer zero import tariffs on import quota from Brazil added pressure was it will likely result in Mexico sharply increasing their purchasing of Brazilian beef. Light cash activity added pressure in the live cattle. Reports have a small amount of cattle trading at $232.
Live cattle opened higher but soon turned lower. The market was able to get back on the positive side late in the session and close with decent gains. Feeder cattle gapped higher at the start of the session then turned lower. The market climbed higher late in the session and closed with solid gains that erased all of Wednesday’s losses. Mexico reported that their screwworm cases have dropped 57% since mid-December. A factory for breeding sterile flies in the Chiapas state should be operating in the first half of this year. Beef exports for October were the lowest since 2015 for the month. Technical resistance for the Feb live cattle market is at $241.35 while $361.15 is resistance for Jan feeder cattle.
For the week, February live cattle closed at $233.725 down $2.275. Jan feeder cattle closed at $360.725 up $4.625.