Technical Analysis on Feeder Cattle, Weather Story and More

Why It Matters

The combination of supply constraints from drought and episodic packer disruptions could tighten beef availability and keep price volatility high, affecting rancher hedging decisions and consumer prices; grain market indecision leaves input costs and feed availability uncertain for livestock producers.

Summary

Feeder cattle futures saw extreme volatility into the holiday weekend, with expanded limits and sharp intraday swings driven by a Cargill Fort Morgan lockout, an after-hours on‑feed report and heavy fund activity. Despite recent $20–$80 pullbacks, technicals show the market has historically bounced to new highs, and traders are using the moves to protect equity rather than capitulate. Fundamental pressure from worsening U.S. drought—now affecting roughly 63% of cattle inventory and tightening supply—supports the longer‑term bullish case. Grains were quieter: wheat in the High Plains remains drought‑stressed while corn and soybeans trade in a wide range awaiting a clear weather or demand catalyst.

Original Description

As we saw heavy volatility in the cattle futures to end the week, Brady Huck with EmpowerAg Trading joins us to share some thoughts on the technical picture in the feeder cattle market. We also discuss the weather situation and how that could play into the herd rebuild and the grain markets moving into summer. Find more at https://www.empoweragtrading.com.

@EmpowerAgTrading

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