Cattle closed with gains in every session this week, pushing both live cattle and feeder cattle to new all-time highs. Strong demand and a sharply higher cash trade helped give cattle strength this week.
The week started with cattle opening the session with solid gains in both contracts, but those gains faded early, only to uncover buy orders which helped cattle accelerate to the plus side. The rally went a long way to cure the recent technical concerns that cattle were showing. The front month April contracts had a more muted session as they are tied to cash and set to expire this week. A friendly Cold Storage report helped give cattle strength. Beef in freezers at the end of March was estimated at 410.52 million pounds, 2% below February’s estimate and 3% below last year. Light support also came from expectations of increased demand as next month is the start of the US BBQ season.
Tuesday’s session had live cattle closing with strong triple digit gains and with all contracts at new all-time contract highs. Feeder cattle closed with heavy triple digit gains. Although feeder cattle did not trade to new all-time highs, they are testing their recent contract high. Live cattle opened the session steady to firm while feeder cattle opened lower. Both expanded their market direction in the first half of the session. Buying took charge the second half of the session as both cattle contracts bounced off support. Technically live cattle have traded to another round of new all-time highs while feeder cattle are making a test of previous highs. Live cattle were supported by packer’s bids of $250. If packers are bidding $250, it’s likely cash will trade higher this week. Strong demand and tight supplies are keeping underlying support under cattle.
Wednesday’s session had live cattle trading with strong gains in the soon to be expiring front month, April, with modest gains in the next two months, but with losses in the deferred months. Feeder cattle closed with small gains in the front month April but with small double-digit losses in the deferred months. Live cattle traded with gains for most of the session due to yesterday’s late surge in cash. Reports had cash bids jumping $7 to $9 by the end of the day Tuesday. The strength in the live cattle helped hold feeder cattle higher, until it didn’t. A firm corn market weighed on the feeder cattle. Both complexes were pressured by reports that the Florida Ag Commissioner was restricting the flow of cattle in FL from TX.
The close out the week ending Thursday, live cattle closed with triple-digit losses in the front months but with only double-digit losses in the deferred contracts. Feeder cattle closed with triple digit gains across the board. Cattle opened the session mixed with live cattle steady to lower while feeder cattle were higher. Live cattle extended session losses while feeder cattle expanded its gains. Profit taking and position squaring ahead of end of month and ahead of the weekend added pressure to the live cattle. Technical selling was also evident in live cattle. Feeder cattle were supported by strong demand. Last week’s beef export sales pace was estimated at 13,790 MT.
For the week, April live cattle went off the board at $258.475 up $10.175 while June live cattle closed at $253.00 up $7.775. April feeder cattle went off the board at $373.75 up $6.125 while May feeder cattle closed at $371.40 up $10.50.
For the month, April live cattle were up $15.45 while June live cattle were up $10.725. April feeder cattle were up $4.625 while May feeder cattle closed up $6.175.
Cattle Weekly Comments May 1
Cattle Weekly Comments May 1
Cattle closed with gains in every session this week, pushing both live cattle and feeder cattle to new all-time highs. Strong demand and a sharply higher cash trade helped give cattle strength this week.
The week started with cattle opening the session with solid gains in both contracts, but those gains faded early, only to uncover buy orders which helped cattle accelerate to the plus side. The rally went a long way to cure the recent technical concerns that cattle were showing. The front month April contracts had a more muted session as they are tied to cash and set to expire this week. A friendly Cold Storage report helped give cattle strength. Beef in freezers at the end of March was estimated at 410.52 million pounds, 2% below February’s estimate and 3% below last year. Light support also came from expectations of increased demand as next month is the start of the US BBQ season.
Tuesday’s session had live cattle closing with strong triple digit gains and with all contracts at new all-time contract highs. Feeder cattle closed with heavy triple digit gains. Although feeder cattle did not trade to new all-time highs, they are testing their recent contract high. Live cattle opened the session steady to firm while feeder cattle opened lower. Both expanded their market direction in the first half of the session. Buying took charge the second half of the session as both cattle contracts bounced off support. Technically live cattle have traded to another round of new all-time highs while feeder cattle are making a test of previous highs. Live cattle were supported by packer’s bids of $250. If packers are bidding $250, it’s likely cash will trade higher this week. Strong demand and tight supplies are keeping underlying support under cattle.
Wednesday’s session had live cattle trading with strong gains in the soon to be expiring front month, April, with modest gains in the next two months, but with losses in the deferred months. Feeder cattle closed with small gains in the front month April but with small double-digit losses in the deferred months. Live cattle traded with gains for most of the session due to yesterday’s late surge in cash. Reports had cash bids jumping $7 to $9 by the end of the day Tuesday. The strength in the live cattle helped hold feeder cattle higher, until it didn’t. A firm corn market weighed on the feeder cattle. Both complexes were pressured by reports that the Florida Ag Commissioner was restricting the flow of cattle in FL from TX.
The close out the week ending Thursday, live cattle closed with triple-digit losses in the front months but with only double-digit losses in the deferred contracts. Feeder cattle closed with triple digit gains across the board. Cattle opened the session mixed with live cattle steady to lower while feeder cattle were higher. Live cattle extended session losses while feeder cattle expanded its gains. Profit taking and position squaring ahead of end of month and ahead of the weekend added pressure to the live cattle. Technical selling was also evident in live cattle. Feeder cattle were supported by strong demand. Last week’s beef export sales pace was estimated at 13,790 MT.
For the week, April live cattle went off the board at $258.475 up $10.175 while June live cattle closed at $253.00 up $7.775. April feeder cattle went off the board at $373.75 up $6.125 while May feeder cattle closed at $371.40 up $10.50.
For the month, April live cattle were up $15.45 while June live cattle were up $10.725. April feeder cattle were up $4.625 while May feeder cattle closed up $6.175.