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Live and feeder cattle futures broke more than $10 in early May after a rally, with managed money liquidating record long positions. Packers used the break to secure inventory at favorable basis levels.
Fund liquidation drives futures weakness unrelated to fundamentals, which can cut feeder cattle values and influence feedlot procurement costs in the near term.
tsln.comMay 3, 2019Not 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.
Live and feeder futures broke over $10 as managed money liquidated record long positions, directly explaining the sharp 5-day drop.
Managed money liquidating record long positions drove a $10+ break in live and feeder futures in early May, the core sentiment/positioning mechanism behind the 5-day drop.
Describes the break of over $10 in cattle futures as managed money liquidated record long positions, which helps explain the large z-score drop.
Dated two days later, it describes the early-May break of more than $10 as managed money liquidated record long positions, which supports the positioning-unwind mechanism but does not pinpoint May 1.
