The Cattle futures markets opened higher on Friday and traded to their respective highs. The markets then worked their way lower eventually reaching their lows for the day. A late rally gave hope we could close in positive territory but that was dashed at the close and the markets settled in the lower end of their ranges. The markets didn’t accomplish much with Friday’s price action with Feeders trading within Thursday’s range and fat cattle dipping below its Thursday low but bouncing off that decline.

There wasn’t any major news in the market today unless you count a tweet from the White house that the President is “authorizing legal documents to be drawn in order to allow Farmers and Ranchers to be given the right to PROCESS THEIR OWN FOOD” as earth shattering news. Packers ended up paying their highest price for the week at one point on Friday as some live sales reached 222.00. Cutouts were weaker and they are expected to slaughter 542,000 head this week which is likely the highest slaughter of the summer and maybe for the year. Why? Because it looks like they are making bank at cash prices have collapse off their highs and cutout prices are in the high end of their range for the year, in my opinion.

Cattle supply remains tight but the constant pressure forces outside of the producers’ control have taken price to the woodshed but has not pressured the beef price. This has the packer once again taking control of the price action in the cash market and keeping producers on their heels. The plant shutdowns, the border opening and of course the White House’s desire to control the price of beef has led to an exodus of bullish traders from the market. Of course, this has done nothing to affect the price of beef, so the packer is once again laughing on its way to the bank. We’ll see!… October Feeder Cattle made its high at 319.25. This fell short of resistance at 319.45 and price dropped. It made its way to the low at 315.15, stopping just shy of Thursday’s low at 314.90. It Kept trying to work higher but ended up settling closer to the low at 316.525.

A failure from settlement could see price test support at 314.20. Support then comes in at 311.90. If settlement holds, we could revisit the Friday high and its nearby resistance. Resistance then comes in at 321.00. October Cattle made its high at 214.00. It failed just below resistance at 214.325. The ensuing breakdown took price to its low at 210.825. This was just below Thursday’s low at 211.375 and support at 210.975. Price held its ground , tried to rally and the pullback into the close saw it settle at 211.725. If settlement holds price could revisit the Friday high. Resistance then comes in at 215.60. A failure from the low could see price test support at 208.80 and then 207.725.