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Cattle Hitting Resistance

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Cattle Hitting Resistance

Jan 03, 2018

Cattle Commentary:  Cattle futures were mixed today with front month futures trading lower to the deferreds higher prices; this indicates that managed money is now starting to roll some of their net long positions out.  February live cattle finished the day down .475 at 122.875, trading in a range of .975 on the day.  March feeder cattle were .225 lower at 146.65, trading in a range of .975 on the session.  Today’s Fed Cattle Exchange had 388 offered but yielded zero sales.  The bulk of last weeks cash trade came in around 123, there have been calls for 1-2 higher, we don’t see much more than 1 at this point.  Colder temperatures have helped offer support to the market but forecasts are turning “warmer” through some key areas which will start to help with weight gain.  Boxed beef has been working higher yet again.

PM Boxed Beef                       Choice            Select
Current Cutout Values:           208.62            199.16
Change from prior day:           3.48                2.59
Choice/Select spread:             9.46

Cattle Technicals

Live Cattle (February)

February live cattle futures struggled again to get traction above our resistance pocket from 123.35-123.80.  If we fail to breakout above this pocket in tomorrows session we will be looking for futures to retreat back towards…Please register for a Free Trial to view our entire technical outlook and proprietary bias and levels.

Feeder Cattle (March)

In yesterdays report we mentioned there being an opportunity to reduce long exposure in our resistance pocket from…Please register for a Free Trial to view our entire technical outlook and proprietary bias and levels.

Lean Hog Commentary & Technicals

February lean hog futures took a stab at our first technical support at 70.30 but failed to see follow through selling, marking a low of 70.20.  Futures ended the day up .35 at 71.075, trading in a range of 1.00 for the session.  Colder temperatures are said to be helping support the market but intermediate term fundamentals could be keeping a lid on any significant rally from here.  Although we did finish off the lows we are still skeptical of how much more room this market can run to the upside.  Key technical resistance comes in from…Please register for a Free Trial to view our entire technical outlook and proprietary bias and levels.

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