Cattle pushed higher this week with all months posting solid triple digit gains for three out of the four sessions for the week ending Thursday. Huge gains were seen to start the week while those gains were extended toward the end of the week, resulting in cattle to end the week at all time contact highs. Support continues to be a broken record, tight supplies, strong demand, and futures discount to cash.
Cattle started the week by gapping higher on the opening bell. A small round of profit taking stepped in early, but cattle were able to brush off the early pressure and rally to post strong gains by the close. Strong cash bids, tight supplies, and strong demand continue to support cattle. Last week cash traded between $234 and $237. Futures discount to cash added support. A lower grain complex added support to the feeder cattle. Technically cattle appear to be looking to test recent highs.
Tuesday’s session had live cattle starting higher and added to the gains, but the market turned lower late in the session and closed with losses. Feeder cattle also climbed higher for the first part of the day session but then slowly fell lower for the last half of the session and closed lower. Profit taking pressured the cattle markets. This week’s slow cash trade added pressure.
Buying returned to the cattle market midweek with live cattle ending sharply higher across the board. Feeder cattle closed with strong tiple digit gains in all months. Cattle opened steady to firm but waffled around the first half of the session before uncovering buyer orders which help cattle rally back to old highs. The fundamentals continue to be supportive to cattle while the technical picture has been concerning, but after this week, even the technical picture has improved and showing signs of more strength ahead.
Cattle saw heavy buying return to close out the week ending Thursday. Live cattle gapped higher once again and extended session gains throughout the session pushing most months sharply higher and setting new all-time highs. Feeder cattle followed the same pattern, gapping higher and then climbing throughout the session, also closing sharply higher at new all-time highs. Strong cash trade supported the markets as cash prices in the south increased from $228 yesterday to $230 today (up $7 over last week). In addition, last week’s slaughter numbers were at 477,000, down 93,000 from the prior week and 62,000 lower than the same week last year. Beef exports were disappointing, coming in at 8,978 MT, which was a 5-week low.
As of June 1, pasture and range conditions were estimated at 42% g/e, 25% fair, and 33% p/vp, up 1% from last year at this time.
For the week, June live cattle closed at $226.30 up $10.825. August feeder cattle closed at $310.15 up $11.325.
Cattle Weekly Comments June 6
Cattle Weekly Comments June 6
Cattle pushed higher this week with all months posting solid triple digit gains for three out of the four sessions for the week ending Thursday. Huge gains were seen to start the week while those gains were extended toward the end of the week, resulting in cattle to end the week at all time contact highs. Support continues to be a broken record, tight supplies, strong demand, and futures discount to cash.
Cattle started the week by gapping higher on the opening bell. A small round of profit taking stepped in early, but cattle were able to brush off the early pressure and rally to post strong gains by the close. Strong cash bids, tight supplies, and strong demand continue to support cattle. Last week cash traded between $234 and $237. Futures discount to cash added support. A lower grain complex added support to the feeder cattle. Technically cattle appear to be looking to test recent highs.
Tuesday’s session had live cattle starting higher and added to the gains, but the market turned lower late in the session and closed with losses. Feeder cattle also climbed higher for the first part of the day session but then slowly fell lower for the last half of the session and closed lower. Profit taking pressured the cattle markets. This week’s slow cash trade added pressure.
Buying returned to the cattle market midweek with live cattle ending sharply higher across the board. Feeder cattle closed with strong tiple digit gains in all months. Cattle opened steady to firm but waffled around the first half of the session before uncovering buyer orders which help cattle rally back to old highs. The fundamentals continue to be supportive to cattle while the technical picture has been concerning, but after this week, even the technical picture has improved and showing signs of more strength ahead.
Cattle saw heavy buying return to close out the week ending Thursday. Live cattle gapped higher once again and extended session gains throughout the session pushing most months sharply higher and setting new all-time highs. Feeder cattle followed the same pattern, gapping higher and then climbing throughout the session, also closing sharply higher at new all-time highs. Strong cash trade supported the markets as cash prices in the south increased from $228 yesterday to $230 today (up $7 over last week). In addition, last week’s slaughter numbers were at 477,000, down 93,000 from the prior week and 62,000 lower than the same week last year. Beef exports were disappointing, coming in at 8,978 MT, which was a 5-week low.
As of June 1, pasture and range conditions were estimated at 42% g/e, 25% fair, and 33% p/vp, up 1% from last year at this time.
For the week, June live cattle closed at $226.30 up $10.825. August feeder cattle closed at $310.15 up $11.325.