Live cattle futures were quiet for most of yesterday’s session, then launched roughly 1.00 higher in the final 60 seconds of trade. We would view this as end of the month position squaring from funds, who have had a bearish tilt on the market for an extended period of time. Cash trade has been relatively quiet this week, with relatively steady prices, for what has been traded.
If you have been watching the pre-market livestock markets over the last month (6am CT- 8:30am CT), you’ve probably noticed that it is often quoted as limit-up or limit-down. Yesterday showed limit down, up until the opening bell. Right now, we are showing limit down, again. We did reach out to CME and filed a complaint yesterday. This is a deceptive practice that alters early morning order-flow for honest participants. If the party doing this is within the guidelines, perhaps the guidelines need to be revisited.