Wholesale beef prices continue to move lower, pressuring live cattle futures and cash prices as traders argue about how soon a beef bottom may come. Debate rages among traders about how much – or if – beef demand is being affected by growing supplies of pork and chicken. They also wonder how much – or … Read More
Managed Money Liquidates Cattle Longs
Managed Money liquidated long positions aggressively during the week ended Tuesday, taking them to their lowest net position since the week ended Tuesday, March 17, and were said to be a significant factor in the futures market slide. The Commodity Futures Trading Commission said in its weekly Commitments of Traders report Friday that those large … Read More
Hide Values Pressure Drop Credit
The value of hides and offal has been declining all year and now threatens to drop below the previous five-year average as its principal ingredient, hides, loses buying interest. Further declines are possible, since the factors that went into the decline remain in place. Hides make up the bulk of a USDA statistical grouping of … Read More
Summer Heat Shrinks Beef Demand
Summer heat appears to be taking a bite out of retail beef sales as outdoor temperatures become too uncomfortable to stand over a grill. Futures traders are firmly in the camp of those who are cautious about the bullishness of beef market possibilities into August, taking the nearby Aug contract Tuesday to three-month lows after … Read More
Cattle Feeding Margins Drop
Cattle feeding margins dropped last week as the calculated average cost of the feeder cattle that went into the fat cattle rose, according to the Sterling Profit Tracker. The calculations, published by AgWeb, show feed yard closeouts had a $108.70-per-head loss last week, a significant decline from $11.71 the previous week. A month ago, feedlots … Read More
Rising Beef Production Still Checks Exports
Federally inspected beef production rose last week but remains below the previous five-year average as tight fed cattle supplies keep slaughter in check. Beef production last week rose above the same week a year earlier, but this is because of where the Independence Day holiday was observed. This continued tight beef production level is keeping … Read More
Managed Money Rapidly Expands Net Long Corn Position
Large investment funds collectively called “managed money” have entered a sizeable net long corn position, which some think is so large that fund managers will have to defend their positions in coming days, preventing a seasonal market downturn. The Commodity Futures Trading Commission revealed in its Friday report that for the week ended Tuesday, fund … Read More