In this file:
· AgDay Cattle Analysis: “Strength Down the Road”
· Varilek’s Cattle Call: Oversold Market Conditions
AgDay Cattle Analysis: “Strength Down the Road”
by AgDay TV
via AgWeb - Sep 04, 2020
Carcass weights seem to be rising and livestock analysts are saying that is likely to continue.
According to Drovers, Tuesday’s USDA data shows average weights at 885 lbs., 3 lbs. higher that the previous week and 27 lbs. higher than last year. The additional tonnage is expected to remain a burden for the cattle markets throughout the fall.
“I’ve thought all along if you can work through some of these bigger weights, later on down the road, some of the replacement numbers we saw in there in the springtime and early summer timeframe would end up coming to pass,” says Matt Bennett, a commodity analyst with AgMarket.net.
As for the cattle markets, the cattle closed moderately higher today after selling-off most of the week.
“I [have to] think you’ll see the December contract go back up into the low $1.10s anyway,” says Bennett...
more, including video report [2:52 min.]
Varilek’s Cattle Call: Oversold Market Conditions
Scott Varilek, Kooima Kooima Varilek Trading
Opinion / Tri-State Livestock News - Sep 4, 2020
The cash cattle market traded weaker on Tuesday and Wednesday of last week. The first bids early in the week of $102.50-$103 were taken. It was disappointing how fast producers jumped at the bids on a Tuesday. Dressed bids ranged from $162-$164 with yields increasing for feeders with cattle on feed for long days.
We know the demand seemed solid for the Labor Day run, but it is the “after” that is unknown. The weaker dollar is benefiting grain and hog exports, but cattle are not quite exploding in my opinion. The stock market continues strong giving hope for continued domestic demand optimism.
Fed cattle showlists seem manageable for a typical September market in my opinion. The numbers in the south are below Covid 19 struggle levels, and the north has less numbers than a year ago. However, the first low ball bids in the week being taken do not help me prove that point. It could be that weights remain well over year ago levels with steer carcasses 26 pounds higher than in 2019.
The cattle futures have had a significant correction and found themselves oversold on stochastics to finish the week. There is a rumored plan for more funds to...