By IFCMarkets

US beef exports may increase

Market participants believe that exports of beef from the United States in 2019 will be at the 2018 level. Will the LCATTLE quotations increase ?

In the first quarter of this year, exports of beef from the United States decreased by 4.7% compared to the same period in 2018. At the same time, LCATTLE quotations have fallen from the beginning of the year by 14%. Theoretically, in the time remaining to the end of the year, the export of American beef may increase. Additional positive impact may be the decision of Japan to cancel all restrictions on the supply of cattle meat from the United States. Some of them acted for more than 15 years after an outbreak of “mad cow disease” (bovine spongiform encephalopathy). The outlined growth of quotations of grain can also contribute to the rise in price of cattle, since grain is used in the production of combined feed.

On the daily timeframe, LCATTLE: D1 is from a falling trend and is trying to adjust to the top. Various technical analysis indicators have generated upside signals. Further growth of quotations is possible in case of an increase in global demand and feed prices increase.

Technical Analysis Summary

Market Analysis provided by IFCMarkets