Despite a steady to higher cash cattle trade Thursday morning, the cattle markets fared about as poorly as possible on Thursday afternoon and Friday, settling with general $4-5 weekly losses in the fats and as much as $7 lower in the feeders. The action issued us a quick reminder that cattle are very much impacted by global macro markets and the “get me out” psychology. This morning, global markets are back on better footing and I’d expect cattle futures to play along as well. Still, the technical picture has been wounded and now that futures are into the chart gap left back on Dec 21, chartists will want to fill it, which would be a move as low as $127.17 in April live cattle. Boxed beef prices also turned lower late last week, with most analysts expecting that this four week rally has come to an end. Weekly slaughter totaling 568K head, up from 550K last week and 550K this week last year. Do note the USDA will be issuing their monthly COF report this Friday, where early ideas have the on feed count down 1% vs last year, Dec placements down 5%, and Dec marketings up 2%.
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