CME: Cattle Futures Hit Hard Again in W23/2019
via The Cattle Site - 11 June 2019
US - Steiner Consulting Group, DLR Division, Inc. reports that cattle futures were hit hard again last week.
This was in part because participants no longer hold as bullish a view of the market as they did back in April. One way to look at this is in the trader positions as reported by CFTC.
Managed money net long position as of 23 April was 155,183 contracts. That position by 4 June had been whittled down to 45,373 contracts.
Last year at this time managed money net longs were 12,260 contracts. The selloff in futures has put some pressure on cash cattle prices, which were lower last week.
Packer margins are now at the highest level so far this year and good grilling demand should incentivise robust fed cattle slaughter through the end of the month.
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