Part of the quandary for traders during the five-day, limit-down drop was that futures were dropping much faster than the cash market. Yet cash also was, and is being weighed down with extra supplies coming through the auction rings, sources said. USDA data show that all weights and classes of feeder cattle and calves were … Read More
Cattle Producers Cut Short Positions
Cattle producers cut their net short positions to the lowest level in more than a year during the week ended Tuesday as managed money, swap dealers and other small speculators either cut their net long positions or took on added shorts. The Commodity Futures Trading Commission’s weekly Commitments Of Traders report, which was released Friday … Read More
Many Feeder Cattle Too High For Profitable Hedge
Despite Thursday’s reversal in live cattle futures and higher post-settlement trade, many feeder cattle prices are too high to put on feed and hedge a profit. Compared with last week, Tuesday’s Oklahoma City Stockyards sale prices for feeder steers were $10 to $15 per cwt lower as the market followed the lead of the plunging … Read More
Holiday Red Meats Demand Dropping
As the Christmas and New Year’s holidays approach, it is clear that wholesale demand for certain cuts of beef and pork is dropping. On average, the wholesale price of boneless ribeyes peaks two to three weeks ahead of the Christmas holiday as retail grocers and restaurants stop ordering holiday fare and concentrate on selling previous … Read More
Cash Feeder Market Firmer Than Futures
As the bottom drops out of the feeder cattle futures market, analysts are looking at the cash market, wondering if things in the country are as bad as they are in the city. The answer is not really. Jan feeder cattle settled Tuesday at $219.60, its fourth straight limit-down day and its lowest point since … Read More
Cattle Herd Rebuilding Efforts Intact
Herd rebuilding efforts among US cow/calf producers remain intact, as total cow slaughter maintains its wide gap below last year and the previous five-year average. Cow slaughter diverged from last year the last week of February and parted ways with the five-year average the last week of March and has been well below both ever … Read More
Managed Money Cuts Long Cattle Position
Managed money decreased its net long position in live cattle futures to the lowest point in three months during the week ended Tuesday, according to the Commodity Futures Trading Commission. The Commission’s weekly Commitments of Traders report showed that managed money, a proxy for large speculators, lowered their net long live cattle positions by 8,491 … Read More