Live cattle futures opened higher yesterday and staged an impressive rally midday, before settling as much as
$1.60 higher in nearby Feb contract and $0.37 to $1.17 higher elsewhere. Once again, “fundamental” news seemed tough to come by and live cattle futures seemed to be heavily influenced by the stock market and other macro factors. After all, I suppose if losses if the macro markets can tear live cattle futures down, they should be able to help lift them up too, right? That’s what seemed to occur yesterday. In the two hours from 10:40 CT to 12:40 CT, the S&P 500 rallied just over 10 points and crude oil added almost $1.00 per bbl. Coincidentally (or not), Feb live cattle futures rallied over $1.50 during that same timeframe. Through the afternoon hours, however, those macro markets started to back off and live cattle futures eased lower along with them. When combined with a weaker boxed beef cutout print (choice down $0.78, select down $2.52), we should likely prepare for a weaker open this morning.
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