Live cattle posted gains in every session this week with most of the support coming from strong demand and higher cash offerings. Cash bids were expected to show strength this week ahead of the Memorial Day Holiday, and Thursday’s cash activity backed that up. Feeder cattle did not trade with gains as often as the live cattle, posting gains in only 2 sessions, with one showing sharp gains which more than made up for the weaker sessions. Cattle are still being haunted by the previous week’s poor technical chart performance, but this week’s gains are not putting a little more doubt in the thought that cattle have topped.
Cattle started the week mixed with live cattle posting gains while feeder cattle struggled. After opening the session mixed cattle continued to trade in a mixed fashion with selling tied to last week’s poor technical chart formation. Losses were kept in check in the live cattle market due to expectations for a strong cash trade. A stronger corn market added pressure to feeder cattle.
A quiet mood fell over cattle on Tuesday as most months in both contracts traded with small changes from the previous close. Cattle opened the session lower but managed to recover and trade with small gains for the first 30 minutes then selling stepped in to push cattle to selloff before finally finding support around midsession. Live cattle continue to see support from a strong cash trade while feeder cattle have support from tight supplies.
Live cattle continued to see strength midweek while selling continued to dominate the feeder cattle market. By midsession live cattle started to see light buying strength while feeder cattle continued to see selling pressure. Live cattle were supported by expectations of a strong cash trade while feeder cattle were under pressure from spill over from the higher grain complex. Technical selling was also evident in the feeder cattle as traders still have not been able to shake off last week’s bearish chart formation.
Cattle brushed off the week’s sloppy trade and found buying once trading to minor support levels. After opening the session mixed with live cattle starting the session firm while feeder cattle opened lower, both contracts found support and rallied to post solid gains. Live cattle were supported by Thursday’s surprisingly strong cash trade. Technical pressure started feeders on the defense, but tight supplies and bargain hunting stepped in to push feeders higher. Last week’s beef export sales pace was estimated at 12,276 MT. Position squaring ahead of Friday’s COF report also added direction.
Since putting in their bottom Sept 9, live cattle gained $48 while feeder cattle gained $71.55. Thursday’s cash feeder cattle index closed at $297.64, now $2.24 above futures.
The May COF report was a nonevent as most of the numbers came out as expected. The numbers for the report were On Feed: 99% (as expected), Placed: 97% (as expected), and Marketed: 97% (as expected).
As of May 18, pasture and range conditions were estimated at 40% g/e, 28% fair, and 32% p/vp, up 4% from last year at this time.
For the week, June live cattle closed at $215.80 up $3.575. May feeder cattle expired Thursday at $295.40 down $1.45 while August feeder cattle closed at $300.375 up $2.775.
Cattle Weekly Comments May 23
Cattle Weekly Comments May 23
Live cattle posted gains in every session this week with most of the support coming from strong demand and higher cash offerings. Cash bids were expected to show strength this week ahead of the Memorial Day Holiday, and Thursday’s cash activity backed that up. Feeder cattle did not trade with gains as often as the live cattle, posting gains in only 2 sessions, with one showing sharp gains which more than made up for the weaker sessions. Cattle are still being haunted by the previous week’s poor technical chart performance, but this week’s gains are not putting a little more doubt in the thought that cattle have topped.
Cattle started the week mixed with live cattle posting gains while feeder cattle struggled. After opening the session mixed cattle continued to trade in a mixed fashion with selling tied to last week’s poor technical chart formation. Losses were kept in check in the live cattle market due to expectations for a strong cash trade. A stronger corn market added pressure to feeder cattle.
A quiet mood fell over cattle on Tuesday as most months in both contracts traded with small changes from the previous close. Cattle opened the session lower but managed to recover and trade with small gains for the first 30 minutes then selling stepped in to push cattle to selloff before finally finding support around midsession. Live cattle continue to see support from a strong cash trade while feeder cattle have support from tight supplies.
Live cattle continued to see strength midweek while selling continued to dominate the feeder cattle market. By midsession live cattle started to see light buying strength while feeder cattle continued to see selling pressure. Live cattle were supported by expectations of a strong cash trade while feeder cattle were under pressure from spill over from the higher grain complex. Technical selling was also evident in the feeder cattle as traders still have not been able to shake off last week’s bearish chart formation.
Cattle brushed off the week’s sloppy trade and found buying once trading to minor support levels. After opening the session mixed with live cattle starting the session firm while feeder cattle opened lower, both contracts found support and rallied to post solid gains. Live cattle were supported by Thursday’s surprisingly strong cash trade. Technical pressure started feeders on the defense, but tight supplies and bargain hunting stepped in to push feeders higher. Last week’s beef export sales pace was estimated at 12,276 MT. Position squaring ahead of Friday’s COF report also added direction.
Since putting in their bottom Sept 9, live cattle gained $48 while feeder cattle gained $71.55. Thursday’s cash feeder cattle index closed at $297.64, now $2.24 above futures.
The May COF report was a nonevent as most of the numbers came out as expected. The numbers for the report were On Feed: 99% (as expected), Placed: 97% (as expected), and Marketed: 97% (as expected).
As of May 18, pasture and range conditions were estimated at 40% g/e, 28% fair, and 32% p/vp, up 4% from last year at this time.
For the week, June live cattle closed at $215.80 up $3.575. May feeder cattle expired Thursday at $295.40 down $1.45 while August feeder cattle closed at $300.375 up $2.775.