CME update: cattle futures rebound on technical, short-covering after a steep drop
US cattle futures rebounded on 20 November from steep losses in the 19 November session in an end-of-week short-covering and technical bounce.
23 November 2020
1 minute read
Reuters reports that though the market rebound was welcome, investors remain wary about rising COVID-19 infections and potential market disruptions.
Live cattle traded lower for most of the day, weighed down by weaker cash cattle sales this week. But the market firmed near the close as traders squared positions ahead of the monthly US Department of Agriculture (USDA) cattle on feed report, which was released after the close.
Livestock markets were roiled this week by concerns that rising coronavirus infections would trigger restrictions like those early in the pandemic, when closures of restaurants dented meat demand and worker illnesses at packing plants backed up the livestock supply chain.
"The cattle and hogs both rebounded technically from yesterday's COVID fears. The cattle losses were overdone," said Don Roose, president of US Commodities.
Chicago Mercantile Exchange February live cattle futures rose 0.125 cent to 110.650 cents per pound, near its session high.
After the close, the USDA reported 1 November on-feed cattle supplies and October placements and marketings below average analyst estimates.
The placements number was supportive to live cattle futures, while marketings were neutral, Roose said.
January feeder cattle ended 0.950 cent lower at 134.600 cents per pound, pressured by demand concerns and rising feed grain prices.
Source: Reuters
