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CFTC data show recent feeder cattle selling came mainly from speculators holding short put options, not from insurance companies in USDA's Livestock Risk Protection program. February live cattle fell to a new low in early December and are down 16% from the September peak.
Feeder futures are down about 20% from their peak.
Speculative put-option liquidation rather than fundamental demand drove the sell-off, which may limit further downside if positioning clears. Continued cattle futures weakness still pressures feeder demand for feed.
dtnpf.comTodd HultmanDec 11, 2023Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
