Cattle markets were down slightly today with the December fat cattle contract the only contract finishing positive on the day, up 55 cents settling at 151.950. Cash seems to be the supporting factor in the market right now but so far this week, I haven’t seen limited volume on the cash end. The prices I have seen have been around a dollar higher compared to last week but packers are being reluctant in their buying which has caused some selling to keep the prices relatively lower. Choice beef cutout values rose 84 cents Wednesday to $263.47 on strong movement of 152 loads. December live cattle fell 55 cents to $151.40, the contract’s lowest close since Oct. 19. USDA reported net weekly U.S. beef sales of 9,200 MT during the week ended Oct. 27, down from 14,100 MT the previous week. Purchases by Japan (3,000 MT, including decreases of 400 MT) and other countries were offset by reductions for China (900 MT).
Feeder cattle futures were down anywhere from 10 to 50 cents lower depending on the contract. Pressure in the corn market is helping to support the feeders so far. From a technical analysis viewpoint, the Jan contract had a cross and close above the 40-day moving average which is a positive indicator for the longer term. Market positioning is showing a positive look with the close over the 1st resistance level and a downside objective now at 178.70. The next area of resistance is around 180.625 while support levels are at 179.350 and 178.70.
Jan Feeder Cattle:
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