Cattle Markets on Brink of Sharp Decline as Funds and Packers Weigh In

The Cattle Markets are facing a critical decision as traders and packers weigh in on prices. As the last trading day of the month approaches, the market may see a sharp decline if funds continue to liquidate or packers try to drive down cash prices.

Soybean, Soybean Meal, and Soybean Oil have seen significant losses, with November'26 Soybeans giving back 64 ¾ cents over the past four days. December'26 Soybean Meal has lost 12.4 over the same period, while December'26 Soybean Oil has dropped 5.69.

The author believes that the market may have hit its bottom, particularly for Soybean Oil, which should find support due to increasing US demand and a tight global supply. As the US biofuel mandate takes effect, exports from India are already down 5%, while Palm Oil supplies are tightening in Malaysia. Indonesia is also planning to increase its biofuel production.