February live cattle rallied to round out Friday’s trade on weather concern and hopes that cash would surge after the close. Both of those premium builders came up short which helped erase those gains in yesterday’s session.
Soybean futures were mixed yesterday as much of the optimism around the Phase-1 deal seems to be priced in (see the 75-cent rally in December for reference).
February live cattle rallied to round out Friday’s trade on weather concern and hopes that cash would surge after the close. Both of those premium builders came up short which helped erase those gains in yesterday’s session.
Friday’s USDA report was mostly bearish Soybeans with yield, production, and ending stocks coming in higher than expectations. What helped prop the market up after an initial dip was technical support and optimism around this week signing of the Phase-1 trade deal.
The U.S-Iran situation has deescalated, top Chinese negotiator Liu He is set to visit Washington next week to sign the “Phase One” trade deal, the Fed thwarted a liquidity crisis and earnings are right around the corner.
U.S. Department of Agriculture’s Export Sales Report for the week ending Jan. 2 will be published at 8:30 a.m. EST on Friday, Jan. 10, instead of Thursday, Jan. 9, due to the weather-related closure of Washington, D.C.-area federal offices.
Thankfully for the cattle market, it doesn’t trade overnight, and participants have the ability to digest information like this as opposed to reacting on emotion.
Iran launched more than a dozen ballistic missiles at two U.S-Iraqi airbases in retaliation for the killing of Soleimani. Fear and uncertainty immediately rattled through markets and the S&P lost 1.7% down to a low of 3181, tagging a critical level of support.
