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Australia Cattle Prices Likely Under Pressure on Supply Increases -- Market Talk

24 Jul 2017 2:24 am

0224 GMT - Australian cattle prices are likely to remain under pressure as the country is likely to remain too dry for farmers to keep all their animals on the properties which will lead to destocking and more cows being sent to slaughter, says Tobin Gorey, Commonwealth Bank of Australia in a note; "The market is anticipating more supply." He notes that high grain prices and a higher Aussie dollar are also weighing on the market. The Eastern Young Cattle Indicator is trading up A$0.01 at A$5.95/kg having fallen 5% since the start of July. (lucy.craymer@wsj.com;Twitter: @lucy_craymer)

0223 GMT - Fresh political issues in DC, and its resultant impact on the dollar in recent days, should soon take a back seat, says Michael McCarthy at CMC Markets. Data from the US and Japan this week "could dominate market thinking." Release include both economic and a pickup in the US earnings season. Then, of course, there's the FOMC. "The outlook for markets may change considerably, especially if recent US economic weakness persists." (kevin.kingsbury@wsj.com; @kevinkingsbury)


0125 GMT - China holds the yuan essentially steady against the dollar, leaving the Chinese currency at its highest level since October in the fix. The central bank sets the daily trading midpoint at CNY6.7410, compared with CNY6.7415 on Friday. Still, as recent trading shows, the yuan hasn't been trading at such-strong levels. The gap between the central bank's fix and where the yuan finishes the day in onshore trading has been growing, on Friday hitting the widest since May. (saumya.vaishampayan@wsj.com; @saumvaish)


0116 GMT - Amid the continued slide in the dollar, overall positioning could soon turn net-short for the first time since May 2016. The latest CFTC data showed a 9th-straight reduction in leveraged funds' net-long position on the greenback, falling by 2/3 in the latest week to $1 billion. That as the WSJ Dollar Index on Friday hit its lowest level in 10 months.(james.glynn@wsj.com; @JamesGlynnWSJ)


0105 GMT - Despite regulatory efforts to cool down Australia's property market, it bustled on the weekend. Preliminary data from Corelogic show auction clearance rates jumped to 74.8% of all properties offered for auction, up from 69.4% a week earlier. More properties were auctioned versus last week and the same week last year, it adds. RBA Deputy Gov. Guy Debelle on Friday calmed markets, which had gotten hot under the collar over the idea of coming interest rate increases. That may have prompted some buyers to head out and bid. Still, these are preliminary numbers subject to possible revision. (james.glynn@wsj.com; @JamesGlynnWSJ) (END)

0004 GMT - After sliding 0.7% Friday, dollar-yen continues to decline to start the week in Asia. Having fallen 4-straight session, the dollar eases a further 0.2% to breach Y111 for the first time in a month amid continued worries about DC. There's also an FOMC meeting this week, though no policy changes are anticipated from it. The dollar, whose late-Friday level in New York versus the euro was its lowest since January 2015 at $1.1666, is down further to $1.1682. (kosaku.narioka@wsj.com) (END)

2347 GMT - Australia won't be leaning toward tightening for some time to come, says Oxford Economics. The end of the commodities boom has led to structural changes that are shifting resources--particularly labor--out of the mining sector. With non-mining investment relatively lackluster and residential construction activity slowing, weakness in growth, employment and wages is likely to continue, it adds. As a result, OE expects the RBA to be cautious in its approach to monetary tightening, keeping the cash rate at 1.5% until 2Q 2020. (james.glynn@wsj.com; @JamesGlynnWSJ) (END)

(END) Dow Jones Newswires

July 23, 2017 22:24 ET (02:24 GMT)

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