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Cattle futures sagged lower again on Thursday, with Feb Live Cattle closing below the 200-day moving average of long term trend support for the first time. I would expect sharply lower traded today, with the US Govt reducing Brazilian tariffs overnight. This does nothing to change our supply/demand, in my opinion, as we’ve ALREADY imported record amounts of beef this year and prices had continued to rally, in spite of those imports. Market sentiment has shifted to the bear side. There is a Cattle on Feed report to be released this afternoon. Estimates that I’ve seen are for the On Feed number to be near 98% of last year, Placements at 92% and Marketings at 93%. Grains were lower yesterday, with Corn posting the lowest close since Oct 22nd and breaking the 50-day average. Soybeans are breaking short-term trendline support and my Wheat charts show the 5 and 10 day moving averages making a Bearish crossover.
My charts indicate new trade signals in Soymeal, Chicago Wheat, 10-Year Note and Crude Oil futures this morning.