By Cassie Fish, http://cassandrafish.com
For the first time in days and days, the first three months of the CME Live Cattle contract closed higher. Oct LC continued to gain on Dec LC even though the Goldman roll is underway and thousands of contracts of buy Dec sell Oct are being executed.
Today’s positive close though did nothing to alter the overall bearish chart picture. Only the fact that the market is grossly oversold holds a candle of optimism for a bigger recovery. Oct LC posted an inside day with a higher close, generally not considered a friendly close following a big move either way.
In the cash market as of this morning, 37k head have traded in a rang of $123 to $127, dressed $198 to $203. One major packer continues to ‘support’ the cash. It is difficult to get a bid in the north, let alone get one sold.
Boxed beef prices are stepping down slowly, the high posted August 24, the same day futures topped. Choice printed at $347.58 that day and today at $333.27. The drop in futures has been much more dramatic thus far than the break in the cutout.
Carcass weights for the week ended August 28 were released today by the USDA and steer weights dropped two pounds to 901, the second highest in history behind 2020.
Copyright © 2021 the Beef Read. All rights reserved
The Beef is published by Consolidated Beef Producers
Use of part or all of this blog for any reason without permission is strictly prohibited.
Disclaimer: The Beef, CBP, Cassie Fish nor NFC Frontier Capital Markets shall not be liable for decisions or actions taken based on the data/information/opinions.
This material has been prepared by a sales or trading employee or agent of New Frontier Capital Markets and is, or is in the nature of, a solicitation. This material is not a research report prepared by New Frontier Capital Markets. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that New Frontier Capital Markets believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.