Live cattle flipped flopped aback and forth this week, posting heavy losses to start the week and again midweek while trying to recover some losses the other two sessions. Feeder cattle did not have the same optimism, posting heavy losses in two of the three lower days and only seeing gains in one session.
Cattle gapped lower at the start of the session and traded in a narrow range after that, closing solidly lower. Feeder cattle gapped lower at the start of the session and were limit down (down $9.25) early in the session. But feeders were then able to trim the losses somewhat and closed around $5.00 lower. Cattle dropped lower on news over the weekend that the union representing workers at the JBS processing plant in Greeley, CO gave notice that they are cancelling their contract extension and could go on strike as early as March 16. The plant employs 4,000 workers. JBS said they can maintain production by shifting to other facilities with capacity.
Monday’s heavy selloff resulted in a firmer performance on Tuesday. Live cattle gapped higher at the start of the session and held the gains to close solidly higher. Feeder cattle also gapped higher at the start of the session and held most of the gains into the close, closing higher and erasing about half of yesterday’s losses. Ideas that yesterday’s losses were overdone and the higher Dow helped cattle end the session with gains. Union workers at the JBS plant in Greeley cannot strike until March 16 as they had to give a 7-day notice to strike. JBS cancelled slaughter for all of this week at the Greeley plant and is shifting deliveries and processing schedules at other JBS facilities.
Heavy selling returned to the cattle market’s midweek as both live and feeder cattle gapped lower Wednesday and then added to the losses to close solidly lower. Pressure came from the lower stock market and higher corn market. Slow cash trade added pressure. Uncertainty about the JBS strike added pressure. Union workers cannot begin striking until March 16, but JBS has already shut down the plant for this week and said they can avoid disruption by shifting deliveries to other plants.
To close out the week, cattle opened the session lower across the board and extended session losses throughout the first half of the session. Early selling was tied to another big push in the crude oil contracts and softer performance in the Dow. Cash activity was reported taking place between $235 and $236. Last week’s beef esport sales pace was estimated at 25,443 MT which is the largest export sales pace since Feb 2023. Feeder cattle were pressured by a stronger grain complex. Technically cattle are in no man’s land and has to decide if they can bounce off minor support, which they are at now, or fade lower.
For the week. April live cattle closed at $230.90 down $3.675. March feeder cattle closed at $349.475 down $6.15.
Cattle Weekly Comments March 13
Cattle Weekly Comments March 13
Live cattle flipped flopped aback and forth this week, posting heavy losses to start the week and again midweek while trying to recover some losses the other two sessions. Feeder cattle did not have the same optimism, posting heavy losses in two of the three lower days and only seeing gains in one session.
Cattle gapped lower at the start of the session and traded in a narrow range after that, closing solidly lower. Feeder cattle gapped lower at the start of the session and were limit down (down $9.25) early in the session. But feeders were then able to trim the losses somewhat and closed around $5.00 lower. Cattle dropped lower on news over the weekend that the union representing workers at the JBS processing plant in Greeley, CO gave notice that they are cancelling their contract extension and could go on strike as early as March 16. The plant employs 4,000 workers. JBS said they can maintain production by shifting to other facilities with capacity.
Monday’s heavy selloff resulted in a firmer performance on Tuesday. Live cattle gapped higher at the start of the session and held the gains to close solidly higher. Feeder cattle also gapped higher at the start of the session and held most of the gains into the close, closing higher and erasing about half of yesterday’s losses. Ideas that yesterday’s losses were overdone and the higher Dow helped cattle end the session with gains. Union workers at the JBS plant in Greeley cannot strike until March 16 as they had to give a 7-day notice to strike. JBS cancelled slaughter for all of this week at the Greeley plant and is shifting deliveries and processing schedules at other JBS facilities.
Heavy selling returned to the cattle market’s midweek as both live and feeder cattle gapped lower Wednesday and then added to the losses to close solidly lower. Pressure came from the lower stock market and higher corn market. Slow cash trade added pressure. Uncertainty about the JBS strike added pressure. Union workers cannot begin striking until March 16, but JBS has already shut down the plant for this week and said they can avoid disruption by shifting deliveries to other plants.
To close out the week, cattle opened the session lower across the board and extended session losses throughout the first half of the session. Early selling was tied to another big push in the crude oil contracts and softer performance in the Dow. Cash activity was reported taking place between $235 and $236. Last week’s beef esport sales pace was estimated at 25,443 MT which is the largest export sales pace since Feb 2023. Feeder cattle were pressured by a stronger grain complex. Technically cattle are in no man’s land and has to decide if they can bounce off minor support, which they are at now, or fade lower.
For the week. April live cattle closed at $230.90 down $3.675. March feeder cattle closed at $349.475 down $6.15.