GFQ9: -1.75 at 151.10, trading in a range of 2.925
Cattle Commentary: Fat cattle futures tried to stabilize to start the week, but found few buyers willing to step in after last week’s blood bath. Friday’s Commitment of Traders report showed funds holding a net long position of 154,550 futures/options. That report would not reflect the selling pressure in the back half of the week, we estimate that funds reduced 25,000 contracts. Cash trade softened up in the back half of the week, which was to be expected after the board collapsed. We would not be surprised to see cash soften up yet again. Feeders on the other hand saw a lot more pressure to start the week as the technical and fundamental backdrop remains weaker. Last week’s break lower in both fats and feeders caught us off-sides. The market had been trading technically sound for the last several months but last weeks breakdown out of the average daily ranges threw a stick in the spokes. We still think there is a buying opportunity down at these levels but need to see technicals re-calibrate here over the next few sessions.
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