The cattle market was at it again this week. After struggling the past few weeks, both cattle contracts found support, and friendlier fundamentals and pushed higher this week. By the time Thursday’s session had ended, the front 3 live cattle months were flirting with contract highs while the deferred months were at all time highs. All of the feeder cattle contracts were trading at new all-time highs. It’s likely some profit taking will occur on Friday, but this week has shown that cattle’s bull run is not ready to end.
Cattle started the week post decent gains in the live cattle contracts while feeder cattle saw much larger strength. Both markets traded on both sides of the fence to start the session, but by midsession the bulls were in control. A mixed to quiet session in the grains helped give cattle support early. Another record setting session in the stock market added support. The lack of a cash trade kept the rally in the live cattle market in check while strong demand and tight supplies supported feeder cattle.
Buying continued to dominate the cattle market on Tuesday as cattle opened the session steady to higher and proceeded to extend session gains. Early support came from reports of another new world screw worm case in a border state. Light support was also due to reports that Brazil’s beef imports into the US are down 20% since the tariffs went into effect. Tight supplies and strong demand continue to be the main driver. A lower wheat and corn market added support.
All time new contract highs were seen in the deferred live cattle and in all of the feeder cattle contracts on Wednesday. Live cattle started the session steady to higher while feeder cattle gapped higher on the opening bell and rallied from there. The lack of a cash trade kept a lid on the fat cattle market. The lack of deliveries against the Oct live cattle contract added support. Strength came from another new all-time contract high in gold, followed by strong gains in the stock market index. Feeder cattle were supported by strong demand, strong cash activity, and tight supplies. Support was also due to Tuesday’s report of another case of new world screw worm being found in Mexico. This helps confirm the fact that the border will remain closed.
Thursday’s session continued with the trend we had seen all week, cattle ending with strong gains and with most months at or near all-time contract highs. Live cattle opened the market steady to mixed but managed to brush off early selling pressure to push higher. Feeder cattle once again gapped higher on the opening bell and never looked back. Live cattle were on shaky ground early in the session with selling tied to the lack of a cash trade. A light trade was reported at steady money. The lack of deliveries against the front month Oct added support. Feeder cattle started higher right out of the gate and expanded session gains due to tight supplies and strong demand.
For the week, October Live cattle closed at $238.475 up $7.45. October Feeder Cattle contracts closed at $375.50 up $18.325.
Cattle Weekly Comments October 10
Cattle Weekly Comments October 10
The cattle market was at it again this week. After struggling the past few weeks, both cattle contracts found support, and friendlier fundamentals and pushed higher this week. By the time Thursday’s session had ended, the front 3 live cattle months were flirting with contract highs while the deferred months were at all time highs. All of the feeder cattle contracts were trading at new all-time highs. It’s likely some profit taking will occur on Friday, but this week has shown that cattle’s bull run is not ready to end.
Cattle started the week post decent gains in the live cattle contracts while feeder cattle saw much larger strength. Both markets traded on both sides of the fence to start the session, but by midsession the bulls were in control. A mixed to quiet session in the grains helped give cattle support early. Another record setting session in the stock market added support. The lack of a cash trade kept the rally in the live cattle market in check while strong demand and tight supplies supported feeder cattle.
Buying continued to dominate the cattle market on Tuesday as cattle opened the session steady to higher and proceeded to extend session gains. Early support came from reports of another new world screw worm case in a border state. Light support was also due to reports that Brazil’s beef imports into the US are down 20% since the tariffs went into effect. Tight supplies and strong demand continue to be the main driver. A lower wheat and corn market added support.
All time new contract highs were seen in the deferred live cattle and in all of the feeder cattle contracts on Wednesday. Live cattle started the session steady to higher while feeder cattle gapped higher on the opening bell and rallied from there. The lack of a cash trade kept a lid on the fat cattle market. The lack of deliveries against the Oct live cattle contract added support. Strength came from another new all-time contract high in gold, followed by strong gains in the stock market index. Feeder cattle were supported by strong demand, strong cash activity, and tight supplies. Support was also due to Tuesday’s report of another case of new world screw worm being found in Mexico. This helps confirm the fact that the border will remain closed.
Thursday’s session continued with the trend we had seen all week, cattle ending with strong gains and with most months at or near all-time contract highs. Live cattle opened the market steady to mixed but managed to brush off early selling pressure to push higher. Feeder cattle once again gapped higher on the opening bell and never looked back. Live cattle were on shaky ground early in the session with selling tied to the lack of a cash trade. A light trade was reported at steady money. The lack of deliveries against the front month Oct added support. Feeder cattle started higher right out of the gate and expanded session gains due to tight supplies and strong demand.
For the week, October Live cattle closed at $238.475 up $7.45. October Feeder Cattle contracts closed at $375.50 up $18.325.