Daily Livestock Report
Cattle futures posted a mixed finish yesterday, recovering slightly in the
nearby contracts and continuing lower in the deferreds. Futures are still
struggling from a very weak technical picture, with futures plunging through
the major moving averages and support lines on Tuesday and Wednesday,
further encouraging long liquidation. Some chart watchers now looking for
Dec live cattle to test their $122.00 lows of late April, still some $3 lower than
current market?? Weekly export sales of just 9,800 MT released yesterday
morning also very poor, a multi-month low, making that the second
consecutive week that export sales have disappointed. YTD cumulative
sales now up 2.4% from last year’s pace. Overnight markets are again
weaker in both the fats and the feeders. We have no data specific to the
cattle today, though do note the USDA is releasing a quarterly grain stocks
report and a quarterly Hogs & Pigs report today, both with the potential to
impact the cattle. More moisture falling on the Southern Plains to assist with
this fall’s grazing conditions. Feeder cattle auction barns already noting
improved buying interest for feeder animals to be sent to wheat pasture.
