Live cattle posted solid gains for two of the three sessions this week while feeder cattle managed to post gains in all three of the short week sessions. Technical buying and profit taking were the main supporting factors.
Cattle opened the short week with gains and held gains throughout the session. Technical buying and the hope that beef demand over the Labor Day holiday was better than the 4th of July beef demand added support. Improving economic signals added support. The volatility in the cattle contracts is not likely to be over as most technicians expect live cattle to test the $200 level and feeder cattle test $300 before reversing. Expectations for calf runs to start to increase due to drought will likely keep a lid on rallies.
Wednesday’s session had cattle starting steady to lower in both contracts. The best that the live cattle managed to muster was small gains before selling pulled the market lower. Live cattle were pressured by a disappointing cash trade. Selling was also due to economic concerns as the rising cost of crude has traders worried that the Fed will be forced to increase interest rates. A lower stock market was the trifecta in pressure for the live cattle. Feeder cattle managed to shake off early selling pressure and end with gains. Support spilled over from a lower corn market.
To end the short week, cattle opened the session lower and expanded session losses throughout the morning. Early selling was tied to the lack of a cash trade combined with what is starting to look like the start of an economic issue for the US. Rumors are back floating around that the Fed might be forced to increase interest rates due to the stubborn inflation. But late in the session technical buying stepped in to push cattle to end with solid gains. The lack of a cash trade limited live cattle gains while a firm grain complex kept gains in feeders limited as well. Last week’s cash activity took place between $218 and $220 but managed to pop to $222 late in the week.
As of Sept 6, pasture and range conditions were estimated at 18% g/e, 29% fair, and 53% p/vp, unchanged from the previous week.
For the week, Oct live cattle contracts closed at $219.675 up $6.725. Sept feeder cattle closed at $337.825 up $13.00.
Cattle Weekly Comments September 11
Cattle Weekly Comments September 11
Live cattle posted solid gains for two of the three sessions this week while feeder cattle managed to post gains in all three of the short week sessions. Technical buying and profit taking were the main supporting factors.
Cattle opened the short week with gains and held gains throughout the session. Technical buying and the hope that beef demand over the Labor Day holiday was better than the 4th of July beef demand added support. Improving economic signals added support. The volatility in the cattle contracts is not likely to be over as most technicians expect live cattle to test the $200 level and feeder cattle test $300 before reversing. Expectations for calf runs to start to increase due to drought will likely keep a lid on rallies.
Wednesday’s session had cattle starting steady to lower in both contracts. The best that the live cattle managed to muster was small gains before selling pulled the market lower. Live cattle were pressured by a disappointing cash trade. Selling was also due to economic concerns as the rising cost of crude has traders worried that the Fed will be forced to increase interest rates. A lower stock market was the trifecta in pressure for the live cattle. Feeder cattle managed to shake off early selling pressure and end with gains. Support spilled over from a lower corn market.
To end the short week, cattle opened the session lower and expanded session losses throughout the morning. Early selling was tied to the lack of a cash trade combined with what is starting to look like the start of an economic issue for the US. Rumors are back floating around that the Fed might be forced to increase interest rates due to the stubborn inflation. But late in the session technical buying stepped in to push cattle to end with solid gains. The lack of a cash trade limited live cattle gains while a firm grain complex kept gains in feeders limited as well. Last week’s cash activity took place between $218 and $220 but managed to pop to $222 late in the week.
As of Sept 6, pasture and range conditions were estimated at 18% g/e, 29% fair, and 53% p/vp, unchanged from the previous week.
For the week, Oct live cattle contracts closed at $219.675 up $6.725. Sept feeder cattle closed at $337.825 up $13.00.