Cattle traded in a back and forth fashion starting the week posting solid gains and then flip flopping back and forth for the rest of the week. On a positive note, the stronger session way outweighed the lower session which helped cattle end the week posting solid gains.
The week started off with cattle gapping sharply higher on the opening bell and never looking back. Early support came from Friday’s bullish COF report. The report showed less cattle on feed than expected as well as a sharp drop in placements and strong marketing. Gains were kept in check by a higher corn market. Light support was also due to a softer performance in the outside markets.
Tuesday’s session had cattle opening higher across the board but this time cattle ran into heavy selling pressure soon after the opening bell. Profit taking and technical selling was the main feature in cattle, with light selling being tied to the lack of an overall lower ag complex. Early support was due to spill over strength from the lower crude oil and grain complex as well as from the firm stock market.
Gains returned to the cattle market midweek with cattle opening the session mixed with live cattle higher while feeder cattle started the session on both sides of the fence. It did not take long for cattle to find support and rally, pushing higher throughout the session. Early support came from technical buying as cattle have had the ability to bounce off support this week due to strong demand and tight supplies. The lack of a cash trade limited the gains in the live cattle. A lower corn market supported the feeder cattle.
To close out the week Thursday, cattle started the session lower in both contracts but managed to trade on both sides of the fence until a late round of selling pressure pushed cattle deep into the red. A firmer crude oil market and lower Dow added pressure late. Last week’s beef export sales pace was estimated at 9,397 MT. The lack of a cash trade pressured cattle early. A light cash trade did develop between $222 and $223, which was unchanged from last week. The cash feeder cattle index closed at $336.98.
As of Sept 20, pasture and range conditions were estimated at 17% g/e, 30% fair, and 53% p/vp, down 2% from the previous week.
For the week, Oct live cattle contracts closed at $218.875 up $2.95. Sept feeder cattle expired Thursday at $337.625 up $4.05 while the Oct feeder cattle contract closed at $334.925 up $11.425.
Cattle Weekly Comments September 25
Cattle Weekly Comments September 25
Cattle traded in a back and forth fashion starting the week posting solid gains and then flip flopping back and forth for the rest of the week. On a positive note, the stronger session way outweighed the lower session which helped cattle end the week posting solid gains.
The week started off with cattle gapping sharply higher on the opening bell and never looking back. Early support came from Friday’s bullish COF report. The report showed less cattle on feed than expected as well as a sharp drop in placements and strong marketing. Gains were kept in check by a higher corn market. Light support was also due to a softer performance in the outside markets.
Tuesday’s session had cattle opening higher across the board but this time cattle ran into heavy selling pressure soon after the opening bell. Profit taking and technical selling was the main feature in cattle, with light selling being tied to the lack of an overall lower ag complex. Early support was due to spill over strength from the lower crude oil and grain complex as well as from the firm stock market.
Gains returned to the cattle market midweek with cattle opening the session mixed with live cattle higher while feeder cattle started the session on both sides of the fence. It did not take long for cattle to find support and rally, pushing higher throughout the session. Early support came from technical buying as cattle have had the ability to bounce off support this week due to strong demand and tight supplies. The lack of a cash trade limited the gains in the live cattle. A lower corn market supported the feeder cattle.
To close out the week Thursday, cattle started the session lower in both contracts but managed to trade on both sides of the fence until a late round of selling pressure pushed cattle deep into the red. A firmer crude oil market and lower Dow added pressure late. Last week’s beef export sales pace was estimated at 9,397 MT. The lack of a cash trade pressured cattle early. A light cash trade did develop between $222 and $223, which was unchanged from last week. The cash feeder cattle index closed at $336.98.
As of Sept 20, pasture and range conditions were estimated at 17% g/e, 30% fair, and 53% p/vp, down 2% from the previous week.
For the week, Oct live cattle contracts closed at $218.875 up $2.95. Sept feeder cattle expired Thursday at $337.625 up $4.05 while the Oct feeder cattle contract closed at $334.925 up $11.425.