It was truly a disappointing week for the cattle markets. After trading to 3 month highs and appearing to be on their way to testing recent highs, which seemed likely after the release of a bullish Oct COF report, cattle fell flat this week struggling to gain traction. The live cattle market posted small gains in the first half of the week but saw losses the rest of the week. Feeder cattle split the week, posting gains to start the week, but then losing ground to end the week. Technically this was not a good performance for cattle.
Cattle opened the week higher and extended session gains out of the grate but then faded its gains late in the session. Early support was due to Friday’s bullish COF report, which showed less cattle in feedlots than expected and the lowest placements for Sept on record. Gains were trimmed late in the session due to concerns about the upcoming Fed Meeting. The Fed is set to meet over the next 2 days and that has the market concerned about interest rate decision. At this point, no one is expecting an increase.
Tuesday’s session saw cattle open the session steady to lower in the live cattle but steady to higher in the feeder cattle. Live cattle were pressured by the lack of cash trade. Feeder cattle were supported by lower grain complex. Light activity was centered on expectations on the Fed’s interest rate decision Wednesday. Early estimates have the Feds leaving rates unchanged.
Selling showed up in the cattle markets midweek as cattle opened Wednesday’s session lower right out of the gate and just kept accelerating session losses throughout the day. It appeared to be a risk off session in the cattle as selling seemed to be tied to the outside markets than anything. A sharply higher crude oil market combined with uncertainty on interest rates to pressure cattle. The fed left rates unchanged but will likely increase them in Dec. Cattle’s move this week has been very disappointing, especially after last Friday’s bullish COF report. The lack of a cash trade and higher corn market added pressure.
To close out the week Thursday, live cattle closed with small losses in the soon to be expiring front month Oct but with triple digit losses in the deferred months. Feeder cattle closed lower in the front three months but with small gains on the far off deferred contracts. The front month Oct expired. Live cattle were pressured by the lack of a firm cash trade as what cash that did take place so far this week has been at $224, $3 to $4 below last week. A firm corn market added pressure to feeder cattle. Last week’s export sales pace was estimated at 10,996 MT, which was a 5-week low. The cash feeder cattle index closed at $351.00.
As of Oct 25, pasture and range conditions were estimated at 23% g/e, 33% fair, and 44% p/vp, unchanged from the previous week.
For the week, Oct live cattle contracts closed at $224.00 down $5.875 while Dec live cattle closed at $220.95 down $10.175. Oct feeder cattle went off the board Thursday at $351.10 up $2.775 while the Nov feeder cattle contract closed at $337.775 down $10.35.
For the month, Oct live cattle contracts closed up $5.325 while Dec live cattle closed down $1.75. Oct feeder cattle went off the board Thursday up $14.675 while the Nov feeder cattle contract closed up $3.475.
Cattle Weekly Comments October 30
Cattle Weekly Comments October 30
It was truly a disappointing week for the cattle markets. After trading to 3 month highs and appearing to be on their way to testing recent highs, which seemed likely after the release of a bullish Oct COF report, cattle fell flat this week struggling to gain traction. The live cattle market posted small gains in the first half of the week but saw losses the rest of the week. Feeder cattle split the week, posting gains to start the week, but then losing ground to end the week. Technically this was not a good performance for cattle.
Cattle opened the week higher and extended session gains out of the grate but then faded its gains late in the session. Early support was due to Friday’s bullish COF report, which showed less cattle in feedlots than expected and the lowest placements for Sept on record. Gains were trimmed late in the session due to concerns about the upcoming Fed Meeting. The Fed is set to meet over the next 2 days and that has the market concerned about interest rate decision. At this point, no one is expecting an increase.
Tuesday’s session saw cattle open the session steady to lower in the live cattle but steady to higher in the feeder cattle. Live cattle were pressured by the lack of cash trade. Feeder cattle were supported by lower grain complex. Light activity was centered on expectations on the Fed’s interest rate decision Wednesday. Early estimates have the Feds leaving rates unchanged.
Selling showed up in the cattle markets midweek as cattle opened Wednesday’s session lower right out of the gate and just kept accelerating session losses throughout the day. It appeared to be a risk off session in the cattle as selling seemed to be tied to the outside markets than anything. A sharply higher crude oil market combined with uncertainty on interest rates to pressure cattle. The fed left rates unchanged but will likely increase them in Dec. Cattle’s move this week has been very disappointing, especially after last Friday’s bullish COF report. The lack of a cash trade and higher corn market added pressure.
To close out the week Thursday, live cattle closed with small losses in the soon to be expiring front month Oct but with triple digit losses in the deferred months. Feeder cattle closed lower in the front three months but with small gains on the far off deferred contracts. The front month Oct expired. Live cattle were pressured by the lack of a firm cash trade as what cash that did take place so far this week has been at $224, $3 to $4 below last week. A firm corn market added pressure to feeder cattle. Last week’s export sales pace was estimated at 10,996 MT, which was a 5-week low. The cash feeder cattle index closed at $351.00.
As of Oct 25, pasture and range conditions were estimated at 23% g/e, 33% fair, and 44% p/vp, unchanged from the previous week.
For the week, Oct live cattle contracts closed at $224.00 down $5.875 while Dec live cattle closed at $220.95 down $10.175. Oct feeder cattle went off the board Thursday at $351.10 up $2.775 while the Nov feeder cattle contract closed at $337.775 down $10.35.
For the month, Oct live cattle contracts closed up $5.325 while Dec live cattle closed down $1.75. Oct feeder cattle went off the board Thursday up $14.675 while the Nov feeder cattle contract closed up $3.475.