By IFCMarkets
Lower meat supply bullish for FCATTLE
US frozen meat supplies have been falling as frozen meat was consumed amid falling meat production when slaughterhouses and processing plants were shut down during the coronavirus outbreak. The total US red meat supplies (includes beef, pork and mutton) in freezers were estimated down 18% from the previous month by US Department of Agriculture National Agricultural Statistics Service (NASS) monthly report released Monday. Lower meat supply is bullish for the feeder cattle price. However while cattle placements have been declining to normal levels estimated at 99% for May above expectations of 96%, according to US Department of Agriculture’s monthly Cattle on Feed report released last Friday, there is still a massive cattle backlog as slaughterhouses are yet returning to normal operation after shutdowns. Increasing meat production is a downside risk for the feeder cattle price.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Neutral | |
| MA(50) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 135.66 |
| Stop loss | Below 129.19 |
Market Analysis provided by IFCMarkets
