Live Cattle
Short Term: Down
Long Term: Down
Opening Calls: 30-50 Lower

Live cattle futures closed moderately lower on Wednesday, settling in the upper half of their daily range.  Weekly lows held in the February futures, with the market trading its narrowest range in the past few weeks. The Fed did raise rates by a quarter of a percent, which could initially create some deflation. We have seen some cash trade at slightly lower money, leaving the spot futures vulnerable but had no deliveries posted against that contract.  Today's cattle weights should be closely monitored.

Feeder Cattle
Short Term: Down
Long Term: Down
Opening Call: 30-60 Lower

Feeder cattle futures continue to be the downside leader, posting new contract lows on Wednesday, before rebounding to above mid range. Open interest was up on the decline suggesting additional new selling. Corn prices were sharply lower on Wednesday and are off another penny overnight. Strength in overnight Dollar values of more than 1% will likely be tough sledding for commodities in general.

Bret Crotts
Schwieterman Marketing, LLC