Cattle Reverse and Finish Lower After Posting New Contract Highs
Cattle futures posted new contract highs but reversed to finish sharply lower. A sign of things to come or just a healthy correction?
Live Cattle (June)June live cattle futures made new contract highs in Tuesday’s trade, but reversed to finish the day sharply lower settling at 213.95, two ticks below the low end of our pivot pocket. If the Bulls fail to hold ground here, we could see long liquidation continue. Speaking of long liquidation, yesterday’s open interest actually increased, which seems a little wild considering the day’s move and volume we saw. An increase in open interest coupled with a sharp price reversal, can indicate a strong reversal in sentiment. This will continue to be monitored closely.
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Daily Cattle and Beef Summary Cutout values were mixed on Wednesday afternoon with choice cuts .74 lower to 349.36 and select cuts 1.38 higher to 335.85. Slaughter on Wednesday was reported at 119k head. The 5-area average price for live steers was reported at 225.00 steady with with the prior report. The CME feeder Cattle Index is at 302.41 with the NBW Real-Time Index showing 301.25 as of this morning. Weekly Export Sales Beef: Net sales of 14,600 MT for 2025 were up 91 percent from the previous week and 21 percent from the prior 4-week average. |
Seasonal Tendency Update (updated 5.12.25) Below is a look at historical price averages for August futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results). |
Commitment of Traders Update Friday’s Commitment of Traders report showed Funds were net buyers of roughly 3k futures contracts, expanding their net long position to 125,611 futures. |
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