Live cattle traded with gains throughout the week while feeder cattle flipped flopped back and forth starting the week with gains and extending gains mid-week only to see selling pressure trim gains Tuesday and Thursday. Although this week is likely going to end with cattle posting a higher weekly close, the cattle just look tired. To add to that, the war in Iran is pushing crude oil prices higher and putting pressure on the stock market, both resulting in a decrease in disposable income for the consumer to spend on higher price beef. The net result is consumers switching to lower cost protein sources and a decrease in dining out.
Cattle started the week opening lower and extended session losses early with selling tied to technical pressure. The lack of a cash trade pressured live cattle. Feeder cattle reversed direction once corn turned lower. Support from the higher feeder cattle helped live cattle post gains. Technical buying added to the support as traders try to make another run to test the old contract highs.
A mixed performance was seen on Tuesday as live cattle managed to end the session with gains while feeder cattle close the day with small losses. Cattle started the session on the defense with selling tied to technical pressure. Light pressure spilled over from the sharply higher US dollar and sharply lower Dow Jones. The lack of a cash trade added pressure to the live cattle. Feeder cattle saw light selling pressure from a mostly firm grain complex. Technically the cattle are in need of a firmer close or the risk of further pressure remains likely.
Heavy buying entered the cattle market midweek, right on cue as cattle have been in a slump and needed something to give traders a reason to come off the fence. Live cattle gapped around $2.00 at the start of the session and then added to the gains to close with strong gains. Feeder cattle gapped about $3.00 higher at the start of the session, and like live cattle, then added to the gains to close sharply higher. Technical buying and the higher Dow supported cattle. Boxed beef prices were higher. Gains were limited by slow cash trade.
Selling returned to the cattle market to close out the week ending Thursday. Cattle traded on both sides of the fence throughout the session but favored the lower side. Live cattle were able to push higher into the close with expectations of a steady cash trade lending support. Last week’s beef export sales were estimated at 11,163 MT, which was a calendar year low. A stronger grains complex pressured the feeder cattle. A lower stock market and higher crude oil market added pressure as both have the ability to lower the average consumer’s buying power.
For the week, April live cattle closed at $234.575 up $2.35. March feeder cattle closed at $355.625 up 20 cents.
Cattle Weekly Comments March 6
Cattle Weekly Comments March 6
Live cattle traded with gains throughout the week while feeder cattle flipped flopped back and forth starting the week with gains and extending gains mid-week only to see selling pressure trim gains Tuesday and Thursday. Although this week is likely going to end with cattle posting a higher weekly close, the cattle just look tired. To add to that, the war in Iran is pushing crude oil prices higher and putting pressure on the stock market, both resulting in a decrease in disposable income for the consumer to spend on higher price beef. The net result is consumers switching to lower cost protein sources and a decrease in dining out.
Cattle started the week opening lower and extended session losses early with selling tied to technical pressure. The lack of a cash trade pressured live cattle. Feeder cattle reversed direction once corn turned lower. Support from the higher feeder cattle helped live cattle post gains. Technical buying added to the support as traders try to make another run to test the old contract highs.
A mixed performance was seen on Tuesday as live cattle managed to end the session with gains while feeder cattle close the day with small losses. Cattle started the session on the defense with selling tied to technical pressure. Light pressure spilled over from the sharply higher US dollar and sharply lower Dow Jones. The lack of a cash trade added pressure to the live cattle. Feeder cattle saw light selling pressure from a mostly firm grain complex. Technically the cattle are in need of a firmer close or the risk of further pressure remains likely.
Heavy buying entered the cattle market midweek, right on cue as cattle have been in a slump and needed something to give traders a reason to come off the fence. Live cattle gapped around $2.00 at the start of the session and then added to the gains to close with strong gains. Feeder cattle gapped about $3.00 higher at the start of the session, and like live cattle, then added to the gains to close sharply higher. Technical buying and the higher Dow supported cattle. Boxed beef prices were higher. Gains were limited by slow cash trade.
Selling returned to the cattle market to close out the week ending Thursday. Cattle traded on both sides of the fence throughout the session but favored the lower side. Live cattle were able to push higher into the close with expectations of a steady cash trade lending support. Last week’s beef export sales were estimated at 11,163 MT, which was a calendar year low. A stronger grains complex pressured the feeder cattle. A lower stock market and higher crude oil market added pressure as both have the ability to lower the average consumer’s buying power.
For the week, April live cattle closed at $234.575 up $2.35. March feeder cattle closed at $355.625 up 20 cents.