Wide daily trading ranges in Live Cattle suggest the market is getting tired and looking for new information to continue the sharp incline it’s experienced over the last 2 months. December and February worked into new highs twice last week but failed to maintain their gains. Even $5+ higher cash trade was only enough to excite the market but not give the confidence to hold. Technically the market has not changed the long term upward rotation. However, the market is in a situation of how steep, how long can we continue the short term curve. With a violation of the short term trend, breaks can be quick and potentially deep. Supplies of Fed cattle are expected to stay tight through the balance of 2014. With this market tone will still be driven by the large managed money positions.
The USDA released their October cattle on feed report Friday afternoon. Overall this again was in line with average trade estimates.
% of Last year
USDA Trade Est
Cattle on Feed – Oct 1 99.5% 99.7%
Placements during Sep 101% 101.4%
Marketing’s during Sep 99.5% 99.2%
This is intended for informational purposes only. Trading may not be suitable for all investors and may involve substantial risk of loss. You should fully understand those risks prior to trading. Past financial results are not necessarily indicative of future performance. If you would like additional market advice please contact:
Blue Reef Agri-Marketing, Inc