Cattle traded mixed this week with live cattle starting and ending week Thursday under pressure but posted decent gains in the middle two sessions. Feeder cattle started the week off posting solid gains and expanded gains throughout the week but ran into profit taking and position squaring at the end of the week Thursday.
The week started with cattle going in opposite directions. Live cattle were under pressure while feeder cattle pushed higher. After opening the session steady to higher, cattle slipped to trade with small losses throughout the first half of the session. But once the grains turned lower, cattle found support and rallied into the black. A strong cash trade and lower grains helped give cattle support early. Technical buying at the end of last week spilled over to help give cattle support.
Tuesday’s session had cattle opening lower the board but turned to trade mixed throughout the first half of the session. Live cattle struggled early in the day with selling tied to the lack of a cash trade while feeder cattle pushed higher due to support from the lower grains. Last week’s strong cash trade helped to give cattle support. Last week’s cash trade took place between $222 and $227 with some reported as high as $228. Technical buying was also evident as cattle push to test upper-level resistance levels.
By midweek, the buyers had shown up. Cattle opened Wednesday’s session steady to lower but managed to find support and rally to post strong triple digit gains by midsession. Gains were trimmed late in the session, but cattle still managed to post good gains for the session. Technical buying and the return of the funds helped give cattle support early. Live cattle gains were kept in check by the lack of a cash trade. Reports have two more ports with Mexico opening in the next month. One at the end of Oct in NM and the other at the end of Nov in AZ. Position squaring ahead of Friday’s COF report was evident as well.
Cattle opened Thursday’s session steady to lower and expanded session losses throughout most of the day. The lack of a cash trade pressured the live cattle. Feeder cattle were under pressure from a firm grain complex. A sharply lower stock market and sharply higher crude oil market pressured cattle as both reduce the amount of disposable income the average consumer has to spend on food and dining out. Last week’s beef export sales pace was estimated at 18,476 MT. Position squaring ahead of Friday’s COF report was evident as well.
The October COF report was bullish cattle as although most estimates were close to expectations, they were at the lowest levels for Sept (Placements and Marketing) since the series began in 1996. The numbers for the report showed On Feed at 100% (as expected), Placed at 88% (4% below expectations and a record low), and Marketed at 93% (as expected, but a record low for Sept).
As of Oct 18, pasture and range conditions were estimated at 23% g/e, 32% fair, and 45% p/vp, up 1% from the previous week.
For the week, Oct live cattle contracts closed at $229.875 up $2.235 while Dec live cattle closed at $231.125 up $2.775. Oct feeder cattle closed at $348.325 up $4.70 while the Nov feeder cattle contract closed at $348.125 up $6.225.
Cattle Weekly Comments October 23
Cattle Weekly Comments October 23
Cattle traded mixed this week with live cattle starting and ending week Thursday under pressure but posted decent gains in the middle two sessions. Feeder cattle started the week off posting solid gains and expanded gains throughout the week but ran into profit taking and position squaring at the end of the week Thursday.
The week started with cattle going in opposite directions. Live cattle were under pressure while feeder cattle pushed higher. After opening the session steady to higher, cattle slipped to trade with small losses throughout the first half of the session. But once the grains turned lower, cattle found support and rallied into the black. A strong cash trade and lower grains helped give cattle support early. Technical buying at the end of last week spilled over to help give cattle support.
Tuesday’s session had cattle opening lower the board but turned to trade mixed throughout the first half of the session. Live cattle struggled early in the day with selling tied to the lack of a cash trade while feeder cattle pushed higher due to support from the lower grains. Last week’s strong cash trade helped to give cattle support. Last week’s cash trade took place between $222 and $227 with some reported as high as $228. Technical buying was also evident as cattle push to test upper-level resistance levels.
By midweek, the buyers had shown up. Cattle opened Wednesday’s session steady to lower but managed to find support and rally to post strong triple digit gains by midsession. Gains were trimmed late in the session, but cattle still managed to post good gains for the session. Technical buying and the return of the funds helped give cattle support early. Live cattle gains were kept in check by the lack of a cash trade. Reports have two more ports with Mexico opening in the next month. One at the end of Oct in NM and the other at the end of Nov in AZ. Position squaring ahead of Friday’s COF report was evident as well.
Cattle opened Thursday’s session steady to lower and expanded session losses throughout most of the day. The lack of a cash trade pressured the live cattle. Feeder cattle were under pressure from a firm grain complex. A sharply lower stock market and sharply higher crude oil market pressured cattle as both reduce the amount of disposable income the average consumer has to spend on food and dining out. Last week’s beef export sales pace was estimated at 18,476 MT. Position squaring ahead of Friday’s COF report was evident as well.
The October COF report was bullish cattle as although most estimates were close to expectations, they were at the lowest levels for Sept (Placements and Marketing) since the series began in 1996. The numbers for the report showed On Feed at 100% (as expected), Placed at 88% (4% below expectations and a record low), and Marketed at 93% (as expected, but a record low for Sept).
As of Oct 18, pasture and range conditions were estimated at 23% g/e, 32% fair, and 45% p/vp, up 1% from the previous week.
For the week, Oct live cattle contracts closed at $229.875 up $2.235 while Dec live cattle closed at $231.125 up $2.775. Oct feeder cattle closed at $348.325 up $4.70 while the Nov feeder cattle contract closed at $348.125 up $6.225.