Mixed Signals in the Livestock Markets
Livestock markets were a bit mixed in Wednesday’s trade as participants grapple with strong fundamentals and potential future headline risks.
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Live Cattle (August)
August live cattle futures pulled back early in yesterday’s trade on the back of some mounting headline risks regarding ICE raids, plant issues in Greely, and concern of screwworm spreading to the US, which some argue is a question of when, not if. An increase in live cattle CVOL over the last two weeks illustrates some concern. However, the cash trade remains stout (well above futures) and the pullback was minimal as the market was able to find support near the prior day’s low. That coupled with Friday’s low has created a short term support pocket from 216.00-216.075. A failure there and you could see prices retreat and retrace some of the big rally from June 5th There’s also a gap from that day coming in from 212.475-213.05. With the expansion of trading ranges in recent weeks, position sizing is paramount. The expansion of ranges should not be all that surprising either, considering the rise in prices over the last year. On a percentage basis, these are still somewhat normal moves, it just becomes harder to navigate with the notional value of the contract increasing so much (hence the consideration to lighten your position size)
Resistance: 220.00-220.25**, 225*
Pivot: 216.00-216.075
Support: 214.50**, 212.475-213.05***
Daily Cattle and Beef Summary
Cutout values were firm on Wednesday afternoon with choice cuts 3.00 higher to 374.76 and select cuts .91 higher to 360.75. Slaughter on Wednesday was reported at 110k head. The 5-area average price for live steers was reported at 234.74. The CME Feeder Cattle Index is at 314.04 with the NBW Real Time Index at 315.14.
Seasonal Tendency Update
(updated 6.9.25)
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 500 futures and options contracts, brining the net long down to 131,805.
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