The Cattle on Feed report was bearish with placements much higher than the trade estimated.įeeder cattle left a chart gap Frida, creating a small island bottom which is positive technically. The Commitment of Traders report showed funds purchasing 13,665 futures contracts, bringing net futures position to a net long of 7,819 contracts.Ĭattle futures may have lower cash already factored in, which may leave the market mixed this week. Cutouts were higher with a gain of $0.86 on Friday. Traders will be looking ahead to the Quarterly Hogs & Pigs report Thursday, which could temper some trade exuberance. Packers should be more aggressive again early this week. Increasing cash and higher cutouts have provided support. This allows the market to focus on fundamentals for the time being and they have been more positive. The delay in the implementation of Prop 12 for six months was somewhat anticipated and now is a reality kicking that can down the road a bit. Hogs closed mixed Friday as the market coasted into the weekend. Feeder cattle showed funds selling 3,003 contracts, bringing their net-long positions to 15,695. The Commitment of Traders report showed funds trimming their long position by 8,999 contracts, bringing their net-long futures position to 111,401 contracts. ![]() Feeder cattle reacted positively to the pressure on corn posting triple-digit gains, but there may be no follow-through in reaction to the Cattle on Feed report. Boxed beef on Friday showed choice down $0.46 and select down $3.84. Packers may bid lower this week using the report and boxed beef weakness as leverage. Marketings in May were 102.0% compared to the estimate of 101.6%. On-feed numbers were 97.0% compared to the estimate of 96.8%. That is bearish for the market and could result in futures gapping lower on the open. ![]() Expectations were for placements at 101.7% of a year ago with the report showing them at 105.0%. May placements were quite a bit higher than the trade expected. ![]() However, the bearish implication of the Cattle on Feed report might have the upper hand with traders selling more aggressively. This may leave traders cautious Monday as the uncertainty of cash and the volatility of corn may keep futures mixed. Live cattle traded mixed Friday as the second week of lower cash trade did not lend itself to a rebound of futures. ** based on formula estimating lean hog equivalent of gross packer revenue. Index has been updated to depict recent changes in live cattle weights and grading percentages.) *Based on formula estimating live cattle equivalent of gross packer revenue. Cattle: Lower Futures: Lower Live Equiv: $241.55 -$0.72*
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |