By Cassie Fish, http://cassandrafish.com
The up and down price action in CME live cattle futures continues, yesterday down, today up. It is too soon to say whether or not today’s action in most active February LC means something. It is true, futures have become oversold and it’s also true that most active February is back above its 100-day and 40-day moving averages. But this has been a fickle market dictated more by money flow than anything else. Does Friday’s bullish USDA Cattle-on-Feed report have anything to do with today’s action? Maybe. Or maybe the funds have exhausted their selling or commercials decided to pick up shorts- or both?
Friday’s USDA COF report will be the first of several bullish reports to come as fed cattle supplies decline below a year ago and below the 5 year average. Friday’s report will contain a stellar marketing number, as fed cattle slaughter in August was very good.
'The Beef' is published by Consolidated Beef Producers