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Analysts expected October 20 Cattle on Feed placements to rise modestly, but they jumped over 13.5 percent. Despite that shock, live cattle futures gained several dollars, with triple-digit gains on Tuesday and fund buying in 2018 contracts.
Cash fed cattle trade was slow but expected to firm, with asking prices at $116 live.
Larger placements add future supply, but strong fund demand and expected higher cash trade pushed futures up, supporting feeder and fed cattle prices and feed demand from feedlots.
wlj.netKerry Halladay, WLJ Managing EditorNov 1, 2017After 268 past bullish report events, LCATTLE moved a median +0.3% over 5 sessions (58% higher; middle half -0.7% to +1.4%), and +1.7% over 20.
After 227 past bullish report events, FCATTLE moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.5%), and +1.1% over 20.
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.
Nov 1 futures gained several dollars with fund buying in 2018 contracts despite bearish placements data, showing strong demand-driven sentiment.
