The cattle market has finally found a near-term floor, The Hightower Report said. The market turned higher from deeply oversold technical levels with high volume and declining open interest.
“October cattle closed sharply higher on the session yesterday, and the buying pushed the market up to the highest level since Sept. 7,” the report said.
“However, demand concerns and the trend in retail values are the driving force to move cattle prices lower,” Total Farm Marketing said.
The cattle market has staged price recovery, and the hog market may have been the back end of “buy cattle-sell hogs” spread trade, Total Farm Marketing said. Prices have dropped quickly as October hogs are trading to price levels last seen in early March, TFM said.