News affecting meat markets

Discussion in 'Commodity Futures' started by TraDaToR, Apr 22, 2010.

  1. TraDaToR



    What are the principal reports/news that can move the meat markets( cattle, feeders, hogs, bellies )? What are those that can be anticipated and where do I find their dates?

    Are the "Livestock and meat trade data" and "meat price spreads" reports from USDA important?

    Thanks a lot.
  2. 1) The "usual suspects": Cattle on Feed, Quarterly Hog & Pig, slaughter numbers, cold storage, the monthly USDA Grain report, longer-term price cycles, large downdays in the stock market, herd liquidation, extreme hot or cold weather forecasts.
    2) Futures calendar-spreads can have "value".
    3) Electronic, screen-based, trading seems to be attracting more speculative traders who tend to look at the same "indicators" meaning the markets may behave more predictably compared to the pit.
    4) The USDA and brokerage firms should have calendars available. :cool:
  3. TraDaToR


    Thanks Nazzdack, I checked the release dates and it seems all those reports are released at 8:30 am or 3 PM ET, so it is outside the pit session. I will study their impacts on overnight trading.
  4. TraDaToR


    Can someone tell me what triggered the move on hogs at the pit close?

  5. 1) One news source I keep an eye on said it was because of "selling"......well duh!
    2) There was a Cattle-On-Feed Report after the close. Somebody may have known the report may be bearish and sold-short cattle AND hogs.
    3) The report aside, when a market is making contract highs on a Friday and loses momentum during the day, be on the lookout for a big reversal from "hot money" who can sense the loss of momentum and downside vulnerability.
    4) If you like chart patterns, today was a "proper" location for a Key-Outside-Down day with the higher opening and lack of followthru at contract highs. We'll see if it can take out today's lows on Monday. :eek: :confused:
  6. TraDaToR


    Thanks for these valuable informations. I thought it might be linked to cattle on feed.

    One other question : What exactly make this report bearish? Production is down 4 % from one year ago and we are going into the consumption period of the summer... Production was expected to be down more than that?

    Here is a little excerpt:

    "U.S. Cattle on Feed Down 4 Percent

    Cattle and calves on feed for slaughter market in the United States for
    feedlots with capacity of 1,000 or more head totaled 10.8 million head on
    April 1, 2010. The inventory was 4 percent below April 1, 2009. The
    inventory included 6.71 million steers and steer calves, down 4 percent from
    the previous year. This group accounted for 62 percent of the total
    inventory. Heifers and heifer calves accounted for 4.02 million head, down
    3 percent from 2009.

    Placements in feedlots during March totaled 1.86 million, 3 percent above
    2009. Net placements were 1.80 million head. During March, placements of
    cattle and calves weighing less than 600 pounds were 395,000, 600-699 pounds
    were 375,000, 700-799 pounds were 602,000, and 800 pounds and greater were

    Marketings of fed cattle during March totaled 1.90 million, 4 percent above

    Other disappearance totaled 60,000 during March, 20 percent above 2009. This
    is the second lowest other disappearance for the month of March since the
    series began in 1996."
  7. 1) It helps to have an idea of what expectations are for the report.
    2) You can attempt to "divine" that information from cash market data.
    3) It can help to know what normally/seasonally tends to happen each month of the year to get an idea if cattle are "moving" slowly or quickly.
    4) The market can "shrug off" a report at price extremes. Today, Monday, ought to be interesting. :cool:
  8. TraDaToR


    It seems you were right about the reversal day, any bet on today closing lower than friday?
  9. That "looks" better on the August & October than June. :cool:
  10. Gross.
    #10     Apr 27, 2010