By IFCMarkets
Lower beef supply bullish for live cattle price
US frozen beef supplies suffered a steep drop last month according to the US Department of Agriculture National Agricultural Statistics Service (NASS) monthly report released a couple of days ago. The total amount of beef in freezers was recorded at 415.221 million pounds, down 64.235 million, or 13.4%, from 479.456 million the previous month. Lower supply is bullish for the live cattle price. However, US cattle ranchers experience a massive backlog even as many slaughterhouses come back online with meat production recovering after a drop because of shutdowns of slaughterhouses and processing plants due to coronavirus outbreak. Thus, processors killed an estimated 119,000 cattle last Friday, up from 115,000 cattle a week earlier. Increasing production is a downside risk for the live cattle price.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Neutral | |
| Donchian Channel | Neutral | |
| MA(200) | Sell | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 98.78 |
| Stop loss | Below 94.06 |
Market Analysis provided by IFCMarkets
