Livestock futures saw a rebound early Monday, with cattle prices surging after a rough week. The rally followed a sharp drop in cash markets, raising questions about whether the bounce can be sustained. Joe Kooima of Kooima Kooima Varilek noted that fundamentals remain weak, particularly in the north, where heavy weight cattle are struggling to find buyers.
The technical picture is also mixed. Live cattle futures filled the gap left after the Sept. 18 Cattle on Feed Report and closed below those levels, while feeder cattle futures filled their gaps and closed above. Kooima described the market as difficult to navigate due to these conflicting signals.
Cash markets drove much of the action last week, with both feeder and fed cattle prices sharply lower. The feeder cattle cash index fell $13.85, and fed cash cattle also declined. In the north, prices ranged from $208 to $212 live, with dressed prices between $325 and $340. Kooima suggested that the north may still face a tough market unless technical factors push prices higher.
Nearby hog futures also attempted a bounce after hitting six-year lows last week. Funds are record short, with over 50,000 contracts, raising questions about whether the market has found a bottom. Kooima pointed to a slight uptick in cash prices and load counts as potential signs of demand.
Grains futures were mixed ahead of the November WASDE report, set for release on Tuesday. The average trade guess for corn yield is 180.3 bushels per acre, down from October. Soybeans are expected to see higher yields, with an average guess of 53.5 bushels per acre. Kooima noted that grain markets typically try to bottom in November as harvest wraps up.