Tiny Bounce

By Cassie Fish, http://cassandrafish.com

Since Monday’s high, most active June LC futures have dropped $6.90 and since March 14, the spring high thus far, $10.22. This week’s acceleration to the downside has been a reaction to news avian influenza has been confirmed in older dairy cows in the Texas Panhandle and surrounding states.  It’s obvious that there has been heavy fund selling, especially this week, in response to the news and to the technical breakdown of futures.

Today’s very small bounce with futures closing green, is no comfort to bulls. There are no bottoming signals. Tomorrow is the trading day of the week, month and quarter and it is likely it will be a bearish one. The market is not technically oversold.

These developments have taken psychological leverage away from the cattle feeder. There was light trade at lower money yesterday and bids of $185 today in Texas, generally $3 lower. Less than 4k cattle have traded for the week, in a wide range of quality and price, depending on the region— $183 to $189. When it is all said and done on Friday, cash prices this week will average less than last week’s all-time high.

Boxed beef values are sliding this week too, with choice printing down $1.22 this morning at $309.87, down from last week’s high for the year just under $314.

Estimates for this week’s slaughter are 600k head.

Copyright © 2024 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.

Please follow and like us: