How Low Will Cattle Go?
Oliver Sloup of Blue Line Futures - - Tue Aug 13, 4:17PM CDT

Livestock Roundup

August 13, 2019



Live cattle futures were limit down today, even with expanded limits. Expand limits remain in affect for tomorrows trading session. September feeder cattle was the only contract of feeders to take full advantage of expanded limits. The money flow in the Ag space has been extremely negative, with grains and cattle taking heat. This has likely helped spur forced liquidation (margin selling) and add to the pressure weve seen. In this type of environment technicals go out the window, this is an emotional/irrational trading environment. There will be phenomenal short-term opportunities, likely at some point this week, but thats not to say we are near a bottom. Expect volatility to remain high. This afternoon daily slaughter came in at 116,000, only 2,000 less than last week.

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