Cattle started the week posting strong gains and closed out the week ending Thursday posting solid to limit up gains, but those gains were trimmed during the middle of the week. Most of the week’s activity could be attributed to position squaring ahead of and after the finding of a New World Screw Worm case in the US.
The week started off with cattle opening the week mixed with live cattle starting the day higher while feeder cattle opened lower. Technical buying and expectations for a steady to firm cash trade supported cattle early in the session. Light support was also due to reports of better-than-expected Memorial Day domestic demand. Feeder cattle were pressured early by a firm grain complex, but the gains in the grains were short lived. APHIS update puts the new world screw worm active cases at 2,072. Over the weekend a New World Screw worm case was reported within 31 miles of the Mexico US border.
Tuesday’s session started with cattle opening lower and extended session losses due to spill over pressure from the previous session. Selling was tied to reports of a NSW case in the US, but that rumor was squashed by USDA saying that the closest case is 25 miles from the border. Reports of a light cash trade taking place at $255 added pressure. The session seemed to be a day about selling in the ag sector as cattle should have seen a better performance with the grains coming under pressure. Light pressure did come from a higher crude oil market, but a stronger financial sector should have overshadowed that news.
Selling pressure continued to weigh on the cattle market’s midweek. Cattle opened lower in both the live cattle and feeder cattle contracts with feeder cattle gapping lower on the opening. Selling pressure expanded throughout the session with concerns about New World Screw Worm causing most of the pressure. The lack of a cash trade added to selling in the live cattle. Cattle managed to bounce off support around midsession.
To close out the week ending Thursday, cattle gapped lower on the opening bell with both live cattle and feeder cattle sharply lower. Early pressure was due to confirmation of a New World Screw Worm case being found in a 3-week-old calf in TX. But by midsession cattle started to see a recovery, starting in the live cattle and then spilling over to the feeder cattle. By noon both were trending higher and advancing gains on what can be considered to be a sell the rumor buy the fact type trading. Thoughts that if the screw worm infestation expands, cattle numbers will tighten up even further added support. The fact that the USDA is pushing the narrative that this is not a food safety issue but more of a cattle producer issue helped calm the early selling pressure.
Live cattle’s new daily trading limit is $8.50 while feeder cattle’s new daily trading limit is at $10.25.
Technically look for June live cattle to test the $253.35 level and look for Aug feeder cattle to test the $365.75 level.
As of May 31, pasture and range conditions were rated at 30% g/e, 28% fair and 42% p/vp, up 1% from last week.
For the week, June live cattle closed at $250.075 up $1.825. Aug feeder cattle closed at $353.90 up $5.475.
Cattle Weekly Comments June 5
Cattle Weekly Comments June 5
Cattle started the week posting strong gains and closed out the week ending Thursday posting solid to limit up gains, but those gains were trimmed during the middle of the week. Most of the week’s activity could be attributed to position squaring ahead of and after the finding of a New World Screw Worm case in the US.
The week started off with cattle opening the week mixed with live cattle starting the day higher while feeder cattle opened lower. Technical buying and expectations for a steady to firm cash trade supported cattle early in the session. Light support was also due to reports of better-than-expected Memorial Day domestic demand. Feeder cattle were pressured early by a firm grain complex, but the gains in the grains were short lived. APHIS update puts the new world screw worm active cases at 2,072. Over the weekend a New World Screw worm case was reported within 31 miles of the Mexico US border.
Tuesday’s session started with cattle opening lower and extended session losses due to spill over pressure from the previous session. Selling was tied to reports of a NSW case in the US, but that rumor was squashed by USDA saying that the closest case is 25 miles from the border. Reports of a light cash trade taking place at $255 added pressure. The session seemed to be a day about selling in the ag sector as cattle should have seen a better performance with the grains coming under pressure. Light pressure did come from a higher crude oil market, but a stronger financial sector should have overshadowed that news.
Selling pressure continued to weigh on the cattle market’s midweek. Cattle opened lower in both the live cattle and feeder cattle contracts with feeder cattle gapping lower on the opening. Selling pressure expanded throughout the session with concerns about New World Screw Worm causing most of the pressure. The lack of a cash trade added to selling in the live cattle. Cattle managed to bounce off support around midsession.
To close out the week ending Thursday, cattle gapped lower on the opening bell with both live cattle and feeder cattle sharply lower. Early pressure was due to confirmation of a New World Screw Worm case being found in a 3-week-old calf in TX. But by midsession cattle started to see a recovery, starting in the live cattle and then spilling over to the feeder cattle. By noon both were trending higher and advancing gains on what can be considered to be a sell the rumor buy the fact type trading. Thoughts that if the screw worm infestation expands, cattle numbers will tighten up even further added support. The fact that the USDA is pushing the narrative that this is not a food safety issue but more of a cattle producer issue helped calm the early selling pressure.
Live cattle’s new daily trading limit is $8.50 while feeder cattle’s new daily trading limit is at $10.25.
Technically look for June live cattle to test the $253.35 level and look for Aug feeder cattle to test the $365.75 level.
As of May 31, pasture and range conditions were rated at 30% g/e, 28% fair and 42% p/vp, up 1% from last week.
For the week, June live cattle closed at $250.075 up $1.825. Aug feeder cattle closed at $353.90 up $5.475.