Cattle saw another brutal week as both the live cattle and feeder cattle contracts lost ground big time. Live cattle lost ground in every session while feeder cattle posted gains to start the week, but heavy losses in the following sessions.
To start the week, live cattle traded on both sides of unchanged for the first part of the session before turning lower and closing with losses. Feeder cattle traded mostly on the higher side and closed with gains. Lower cash trade continued to pressure live cattle. Feeder cattle were able to see small gains on ideas that Friday’s steep losses were overdone. But economic concerns and uncertainty around the election kept a lid on gains.
Selling took charge of the cattle markets on Tuesday as both contracts started the session steady to lower and extended session losses throughout the session. Early selling was tied to technical selling and profit taking due to fund pressure. Uncertainty added pressure as traders take money off the table due to softening stock market and demand concerns. Live cattle losses were kept in check by a soft cash trade which has taken place between $224 and $225. Technically cattle tested the 67% retracement ($231) of the recent high to low trading range (Dec LC high of $242 and low of $211). Now traders are testing the holding pattern of the new short positions.
By mid-week it appeared that maybe the live cattle were finding a bottom but that was not the same feel to the feeder cattle. Cattle opened the session mixed with live cattle steady to firm while feeder cattle were steady to soft. Early support was tied to a firm stock market and lower energy complex. But the gains were short lived as once reports of a light cash trade took place $8 below last week. Technical selling was evident as the funds continue to liquidate long positions.
To close out the week Thursday, cattle opened the session mixed with the live cattle gapping lower on the open while feeder cattle opened the session steady to higher. By mid-session cattle were in full free fall modes with selling tied to a sharply lower stock market. Cattle were able to trim losses going into the close, but all contracts still closed with sharp losses. A sharply lower cash trade pressured the live cattle. Pressure was also due to a sharply lower session in the index markets. Technical selling was evident as the funds continue to liquidate long positions. Last week’s export sales pace was estimated at 10,993 MT.
The cash feeder cattle index closed at $342.76.
For the week, Dec live cattle closed at $214.05 down $6.90. Nov feeder cattle contract closed at $322.325 down $15.45.
Cattle Weekly Comments November 6
Cattle Weekly Comments November 6
Cattle saw another brutal week as both the live cattle and feeder cattle contracts lost ground big time. Live cattle lost ground in every session while feeder cattle posted gains to start the week, but heavy losses in the following sessions.
To start the week, live cattle traded on both sides of unchanged for the first part of the session before turning lower and closing with losses. Feeder cattle traded mostly on the higher side and closed with gains. Lower cash trade continued to pressure live cattle. Feeder cattle were able to see small gains on ideas that Friday’s steep losses were overdone. But economic concerns and uncertainty around the election kept a lid on gains.
Selling took charge of the cattle markets on Tuesday as both contracts started the session steady to lower and extended session losses throughout the session. Early selling was tied to technical selling and profit taking due to fund pressure. Uncertainty added pressure as traders take money off the table due to softening stock market and demand concerns. Live cattle losses were kept in check by a soft cash trade which has taken place between $224 and $225. Technically cattle tested the 67% retracement ($231) of the recent high to low trading range (Dec LC high of $242 and low of $211). Now traders are testing the holding pattern of the new short positions.
By mid-week it appeared that maybe the live cattle were finding a bottom but that was not the same feel to the feeder cattle. Cattle opened the session mixed with live cattle steady to firm while feeder cattle were steady to soft. Early support was tied to a firm stock market and lower energy complex. But the gains were short lived as once reports of a light cash trade took place $8 below last week. Technical selling was evident as the funds continue to liquidate long positions.
To close out the week Thursday, cattle opened the session mixed with the live cattle gapping lower on the open while feeder cattle opened the session steady to higher. By mid-session cattle were in full free fall modes with selling tied to a sharply lower stock market. Cattle were able to trim losses going into the close, but all contracts still closed with sharp losses. A sharply lower cash trade pressured the live cattle. Pressure was also due to a sharply lower session in the index markets. Technical selling was evident as the funds continue to liquidate long positions. Last week’s export sales pace was estimated at 10,993 MT.
The cash feeder cattle index closed at $342.76.
For the week, Dec live cattle closed at $214.05 down $6.90. Nov feeder cattle contract closed at $322.325 down $15.45.