Live cattle traded lower every day this week while feeder cattle posted losses in 3 out of the 4 session ending Thursday. Technical selling pressure and economic concerns weighed on the cattle industry this week. Fundamentals remain supportive.
Cattle opened the week mixed with live cattle steady to higher while feeder cattle were steady to lower. Live cattle were supported by expectations of a strong cash trade while feeder cattle were pressured by the strength seen in the grains. Losses were kept in check by futures discount to cash. Last week’s cash traded at $255 to $256.
Tuesday’s session had cattle open the session with small gains in both contracts but by midsession both contracts came under pressure and faded into the red. The lack of a cash trade pressured the live cattle while the higher grains kept feeder cattle on the defense. Losses were kept in check by futures steep discount to cash. Concerns about the war in Iran and the likelihood that fighting will break out again soon supported the crude oil market and pressured the US stock market, which in turn pressured cattle.
Selling pressure continued in the live cattle market midweek while feeder cattle pushed higher. Live cattle were pressured by the lack of a cash trade as so far only a light trade has developed. Feeder cattle were supported by a lower grain complex. Both contracts were influenced by the uncertainty about the Iran war as it appears the peace treaty has collapsed. This sent crude oil sharply higher and the Dow Jone lower, both negative to cattle and the economy. Losses were kept in check by futures steep discount to cash.
Heavy selling pressure moved into the cattle market Thursday. Cattle opened the session higher in both contracts but could not hold gains. Early support was due to a lower crude oil market and higher Dow Jones, but even that was not enough to help cattle in the afternoon session. The lack of a cash trade pressured the live cattle as it appears to get cash to move at any volume it will likely be at lower dollars. Last week’s export pace did little to help support cattle. Last week’s sales were at 13,977 MT. Technically it has been hard to cattle to sustain a rally in the futures and that is a bit concerning with cash already holding such a premium. Light selling was tied to economic concerns are there seems to be a lot more chatter from the Fed about raising interest rates. Last week’s cash live cattle activity took place between $255 and $256.
As of July 5, pasture and range conditions were rated at 33% g/e, 31% fair and 36% p/vp, down 1% from last week.
For the week, Aug closed at $235.20 down $4.025. Aug feeder cattle closed at $354.60 down $6.025.
Cattle Weekly Comments July 10
Cattle Weekly Comments July 10
Live cattle traded lower every day this week while feeder cattle posted losses in 3 out of the 4 session ending Thursday. Technical selling pressure and economic concerns weighed on the cattle industry this week. Fundamentals remain supportive.
Cattle opened the week mixed with live cattle steady to higher while feeder cattle were steady to lower. Live cattle were supported by expectations of a strong cash trade while feeder cattle were pressured by the strength seen in the grains. Losses were kept in check by futures discount to cash. Last week’s cash traded at $255 to $256.
Tuesday’s session had cattle open the session with small gains in both contracts but by midsession both contracts came under pressure and faded into the red. The lack of a cash trade pressured the live cattle while the higher grains kept feeder cattle on the defense. Losses were kept in check by futures steep discount to cash. Concerns about the war in Iran and the likelihood that fighting will break out again soon supported the crude oil market and pressured the US stock market, which in turn pressured cattle.
Selling pressure continued in the live cattle market midweek while feeder cattle pushed higher. Live cattle were pressured by the lack of a cash trade as so far only a light trade has developed. Feeder cattle were supported by a lower grain complex. Both contracts were influenced by the uncertainty about the Iran war as it appears the peace treaty has collapsed. This sent crude oil sharply higher and the Dow Jone lower, both negative to cattle and the economy. Losses were kept in check by futures steep discount to cash.
Heavy selling pressure moved into the cattle market Thursday. Cattle opened the session higher in both contracts but could not hold gains. Early support was due to a lower crude oil market and higher Dow Jones, but even that was not enough to help cattle in the afternoon session. The lack of a cash trade pressured the live cattle as it appears to get cash to move at any volume it will likely be at lower dollars. Last week’s export pace did little to help support cattle. Last week’s sales were at 13,977 MT. Technically it has been hard to cattle to sustain a rally in the futures and that is a bit concerning with cash already holding such a premium. Light selling was tied to economic concerns are there seems to be a lot more chatter from the Fed about raising interest rates. Last week’s cash live cattle activity took place between $255 and $256.
As of July 5, pasture and range conditions were rated at 33% g/e, 31% fair and 36% p/vp, down 1% from last week.
For the week, Aug closed at $235.20 down $4.025. Aug feeder cattle closed at $354.60 down $6.025.