By Scout Nelson
Cattle markets experienced significant divergence with feeder cattle prices surging while live cattle markets faced mixed results. January Feeder Cattle opened higher at 243.125, climbed to a session high of 248.225, and settled at 247.225.
Strong demand from feedlots drove the rally, with the feeder index reaching new highs. Speculation on aggressive buying ranged between farmer feeders and large feedlots under supply pressures.
Resistance levels for feeders lie at 248.30 and 248.875, with the 200-DMA at 249.575. Support may be tested at 246.225 or lower if settlement levels don’t hold.
In contrast, February Live Cattle struggled, opening lower at 184.65 and rallying to 186.50 before settling at 185.25. Resistance levels stand at 185.75 and the flattening 21-DMA at 186.175. Seasonal retail shifts to turkey and ham purchases have pressured beef cutouts, with choice cutouts at 303.34 and select cutouts at 276.14.
Packer purchases and slaughter numbers remain subdued, with Friday’s estimated slaughter at 120,000, below last year’s figure. The USDA reported limited cash trading in key regions, with live cattle trades ranging from 182.00 to 186.00 and dressed trades from 287.00 to 300.00.
As Thanksgiving approaches, seasonal demand may shift, offering potential support for live cattle markets. Feeders continue to see strong interest, but the market’s sustainability remains uncertain. All eyes are on settlement levels and seasonal trends to determine the next moves in these dynamic markets.
Photo Credit:gettyimages-digitalvision
Categories: Kansas, Livestock, Dairy Cattle