Sort & Cull

February live cattle posted their eighth weekly loss in the past eleven weeks, the largest correction in prices since 2020. In an unusual twist, bearish specs have been covering their short positions.

At the end of Black Friday's short post-holiday session, February live cattle was marked down 13% from a September high, an unexpected discount on a day known for bargain sales.

February live cattle prices showed better support in the week ending Nov. 17, but it's fair to say traders were nervous heading into Friday's On-Feed report.

February live cattle prices fell over $10 in the week ending Nov. 10, and cash prices were also lower, but not as much. Demand concerns, plus a shakedown of bullish spec positions, are the mostly likely culprits.

In the November WASDE report released Thursday morning, beef production forecasts were increased significantly for 2024, but several other contributing factors led to a bearish market freefall in the cattle complex, according to DTN analysts.

February live cattle prices remain limited by October's bearish on-feed report as the U.S. dollar turns south, prompted by a pause from the Fed.