August live cattle (LEQ26) futures on Friday fell $2.65 to $224.425, hit a four-month low, and for the week were down $10.775. August feeder cattle (GFQ26) futures lost $0.65 to $345.95, closed at a five-week low close, and for the week were down $8.65.
The cattle futures markets saw still more technical selling on Friday as the bleeding continued. The technically bearish weekly low closes on a Friday again last week set the stage for follow-through chart-based selling early this week.
Soybean Meal Prices Are Rising Amid Global Supply Disruptions. How to Trade the Uptrend Here.
Coffee Prices Supported by Delay of Brazil's Coffee Harvest
Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!
Lower cash trade last week also hit futures market prices. Cash cattle trading turned very active as of midday Friday, with the USDA reporting steers averaging $238.59 and heifers $238.16. That is well down from the prior week's USDA-reported cash cattle trading average of $248.01.
Live cattle futures prices have dropped more than $20 in under a month. The multi-year bull market has paused as elevated prices have somewhat dented consumer demand, giving packers greater leverage in cash negotiations. Boxed beef values have weakened in tandem, modestly improving packer margins amid lighter summer demand.
Cattle market participants remain cautious, awaiting the next batch of data in this Friday's USDA cattle-on-feed and cold storage reports, as well as the USDA semiannual cattle report on Friday, which will detail the mid-year inventory of all cattle and calves, including beef and dairy cows, as well as the calf crop for the year.
The stock market has been wobbly of late and gasoline prices have ticked up along with crude oil (CLQ26) following increasing military action in the Middle East. These are also potentially bearish elements for the demand side of the equation for beef at the meat counter. The New World screwworm threat, and particularly rising cases detected in the United States, may also psychologically damage consumer confidence in buying beef.
August lean hog (HEQ26) futures on Friday rose $1.375 to $101.65, hit a seven-week high, and for the week were up $2.65.
The lean hog futures market saw more technical buying interest from the speculators on Friday amid charts that are turning more bullish as prices are in a solid uptrend on the daily bar chart.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
