Oct Cattle closed 57 pts higher on the session today but still lost 167 pts for the week.
The market traded slightly lower early in the session finding pressure from weakness in the stock market and continued Long liquidation selling in metal and energy markets.
However, a lack of new selling pressures from fund traders plus talk of the oversold condition of the market after the break this week helped to support a bounce and higher trade into the mid-session.
Positioning (Short-covering) ahead of the USDA Cattle-on-Feed report for release after the close helped to support the market as well.
Boxed-beef cut-out values at mid-session came in at 183.78 which was down 0.68 on the day and down from 185.58 last week at this time.
The report was a Bullish surprise as placements of Cattle into feedlots for the month of August came in at 1% below last year as compared with expectations for a surge of 8%.
Cattle marketing's for August were also much higher than expected at 7% above last year. This left the September 1st on-feed supply at just 5% above last year compared with expectations for a supply in excess of 8% above last year.
The report could support sharply higher trade Monday as long as outside forces are not too negative
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.