Schwieterman Cattle: Lower futures surprising alfter stronger cash bids

Live Cattle
Short Term: Down
Long Term: Down
Opening Calls: Mixed

Live cattle futures reversed early strength to post new lows for the move and a new low close since Dec 21.

The lower close was somewhat surprising after seeing steady to stronger bids on Monday. Cutout values finally had a lower day, after rallying 43 cents a pound over the past couple of weeks. Open interest was up 393 on the day suggesting new hedgers entering the market. After Mondays' strong cash bids by at least one major, the cash market has turned quiet, with most asking prices $136 or higher.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: Mixed

Feeder cattle futures closed mixed on Tuesday and about in the middle of a 3.75 trading range. Cash index levels were lower, dropping 1.31 to 164.51. A rise in corn prices coming out of the monthly supply/demand report took the air out of an early rally effort in the feeders. Overnight corn prices are modestly lower and feeder futures are trading from 4.00-7.50 discount to the current index.

Bret Crotts
Schwieterman Marketing, LLC


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