Morning Livestock Report, 01/19/2016

Tuesday, January 19, 2016

Despite a steady to higher cash cattle trade Thursday morning, the cattle markets fared about as poorly as possible on Thursday afternoon and Friday, settling with general $4-5 weekly losses in the fats and as much as $7 lower in the feeders. The action issued us a quick reminder that cattle are very much impacted by global macro markets and the “get me out” psychology. This morning, global markets are back on better footing and I’d expect cattle futures to play along as well. Still, the technical picture has been wounded and now that futures are into the chart gap left back on Dec 21, chartists will want to fill it, which would be a move as low as $127.17 in April live cattle. Boxed beef prices also turned lower late last week, with most analysts expecting that this four week rally has come to an end. Weekly slaughter totaling 568K head, up from 550K last week and 550K this week last year. Do note the USDA will be issuing their monthly COF report this Friday, where early ideas have the on feed count down 1% vs last year, Dec placements down 5%, and Dec marketings up 2%.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial