Cattle started the week in a deep hole as all contracts gapped sharply lower on the opening and quickly fell to limit down levels. The rest of the week cattle spent digging out. Technical buying, position squaring, and profit taking combined to give cattle strength.
The cattle market gapped sharply lower and quickly fell to limit down levels to start the week. Early selling was tied to a knee jerk reaction to the announcement that Tyson was closing one of their NE processing plants and plan on scaling back operations at a TX plant to 1 shift from 3 shifts. The reduction in slaughter capacity is due to tight supplies and the inability to acquire product to satisfy the plant. Traders completely ignored Friday’s COF report, which was bullish cattle as it showed the number of cattle in feedlots at 7-year lows. Placements were estimated at their lowest level in over 30 years. Marketings were also at their lowest level in 10 years.
Tuesday’s session closed out being mixed with live cattle position small losses while feeder cattle closed with solid gains, after trading on both sides of the fence. Cattle gapped lower on the opening bell and extended session losses early. Selling was tied to spill over pressure from Monday’s lock limit down performance. Technical buying kicked in once live cattle broke below $102 and feeder cattle traded below $300. Light support spilled over from a strong stock market.
Wednesday’s session had cattle gapping higher on the opening bell and never really looked back. Early support came from technical buying as traders bounced off very strong support (Dec live cattle at $2.10 and Jan Feeder cattle at $300). Thoughts that Monday’s losses were overdone added to the support. Cattle’s fundamental reason for rallying is still the issue, and it was the reason for Tyson to scale back slaughter, tight supplies. Closing the plant will reduce a buyer of cattle, but it won’t increase the number of cattle available, it will just help make the plants that continue to operate run a bit more efficient.
Wednesday there have been reports of a light cash trade in the north between $208 and $210. Last week’s cash activity took place between $215 and $219.
For the week, Dec live cattle closed at $215.30 up 85 cents. Jan feeder cattle closed at $323.05 up $8.825.
Cattle Weekly Comments November 28
Cattle Weekly Comments November 28
Cattle started the week in a deep hole as all contracts gapped sharply lower on the opening and quickly fell to limit down levels. The rest of the week cattle spent digging out. Technical buying, position squaring, and profit taking combined to give cattle strength.
The cattle market gapped sharply lower and quickly fell to limit down levels to start the week. Early selling was tied to a knee jerk reaction to the announcement that Tyson was closing one of their NE processing plants and plan on scaling back operations at a TX plant to 1 shift from 3 shifts. The reduction in slaughter capacity is due to tight supplies and the inability to acquire product to satisfy the plant. Traders completely ignored Friday’s COF report, which was bullish cattle as it showed the number of cattle in feedlots at 7-year lows. Placements were estimated at their lowest level in over 30 years. Marketings were also at their lowest level in 10 years.
Tuesday’s session closed out being mixed with live cattle position small losses while feeder cattle closed with solid gains, after trading on both sides of the fence. Cattle gapped lower on the opening bell and extended session losses early. Selling was tied to spill over pressure from Monday’s lock limit down performance. Technical buying kicked in once live cattle broke below $102 and feeder cattle traded below $300. Light support spilled over from a strong stock market.
Wednesday’s session had cattle gapping higher on the opening bell and never really looked back. Early support came from technical buying as traders bounced off very strong support (Dec live cattle at $2.10 and Jan Feeder cattle at $300). Thoughts that Monday’s losses were overdone added to the support. Cattle’s fundamental reason for rallying is still the issue, and it was the reason for Tyson to scale back slaughter, tight supplies. Closing the plant will reduce a buyer of cattle, but it won’t increase the number of cattle available, it will just help make the plants that continue to operate run a bit more efficient.
Wednesday there have been reports of a light cash trade in the north between $208 and $210. Last week’s cash activity took place between $215 and $219.
For the week, Dec live cattle closed at $215.30 up 85 cents. Jan feeder cattle closed at $323.05 up $8.825.