Firm follow-through pressure is developing in all live cattle and feeder cattle futures, despite a sense of initial market stability early Tuesday morning. The follow-through pressure is equally evident in nearby live cattle and feeder cattle futures, where Monday’s losses were most noticeable in feeder cattle futures at the end of the trading day.
Prices still remain well above both 40- and 100-day moving averages, but markets have pulled significantly away from all-time highs and that is creating additional market uncertainty. March corn is up 6 3/4 at $4.955 and March soybean meal is up $8.50 at $312.2. The Dow Jones Industrial Average is up 37.49 at 44,459.40.
Live cattle futures started Tuesday morning with cautious optimism that the aggressive price tumble may have run its course. But despite the stability at opening bell, active selling pressure quickly and aggressively stepped back into the market, allowing for moderate to sharp losses through most of the morning.
April futures are leading the market lower with increased concern of global markets surrounding tariff talk and potential challenges that would impact beef exports. But for now, traders seem to be content with current midday losses as trade may remain sluggish through the end of the trading day.
Cash cattle markets remain very quiet early Tuesday with bids and asking prices yet to be well established for the week. At this point, significant trade will likely be delayed until the last half of the week. Both sides appear to be hesitant to extend any indication of market direction given the aggressive market volatility seen over the past couple of days.
February live cattle are $1.50 lower at $201.475, April live cattle are $2.50 lower at $197.65, June live cattle are $2.10 lower at $192.375. Boxed beef prices are higher: Choice up $1.74 ($333.73) and Select up $0.91 ($320.75) with a movement of 39.90 loads (22.96 loads of Choice, 10.19 loads of Select, zero loads of trim and 6.75 loads of ground beef).
Feeder cattle
Feeder cattle futures have added additional price pressure as the session continued Tuesday, although the initial indication was that market stability may be established following the aggressive price tumble Monday. But lack of underlying supportive buying activity just after opening bell allowed for additional gaps to develop, allowing prices to tumble $1.80 to $2.10 at midday. Nearby feeder cattle futures have now recorded a $10/cwt price loss since hitting all-time highs last week in January.
The concern surrounding price pressure in live cattle markets and uncertainty around global trade activity in the coming months has caused traders to take a much less aggressive view to the market than was seen just one week ago. March feeders are $2.55 lower at $267.95, April feeders are $2.80 lower at $267.025 and May feeders are $2.80 lower at $265.175. — DTN
