Live Cattle Futures Commentary
October live cattle broker lower on the open on the back of a tweet from President Trump regarding Trade with China; “China was supposed to start buying our agricultural product now - no signs that they are doing so. That is the problem with China, they just don’t come through.” This really shouldn’t come as much of a surprise and presented a great short-term opportunity to fade the headline once the dust settled. Technical support and resistance levels remain intact for tomorrow’s session.
Resistance: 110.60-110.85***, 111.375**, 113.15-113.825****
Support: 107.025-107.25***, 103.175-104.20****
Feeder Cattle Futures Commentary
September feeder cattle traded lower on the open along with just above every other Ag market, thanks to broad selling on the lack of Trade progress with China. The reversal off of the lows gives the bull camp the advantage going into tomorrow’s session and prices are right up against significant resistance. If the bulls can chew through 145.00 with conviction, we could see a run towards 147.00.
Resistance: 144.25-145.10***, 147.00-147.60**
Support: 139.15-139.675***, 134.40-135.00**
PM Boxed Beef / Choice / Select
Current Cutout Values: / 214.03 / 191.13
Change from prior day: / .77 / 1.37
Choice/Select spread: / 22.90
Lean Hogs Commentary
October lean hogs got taken to the woodshed early this morning, taking advantage of expanded limits. The pressure was a combination of follow-through from yesterday and a tweet from President Trump regarding the lack of trade progress with China. We were working with clients to buy the pullback, fading the knee jerk reaction to a recycled headline. If the market cannot stabilize in the back half of the week, we will recommend tightening things up into the weekend.
Resistance: 76.70-76.75***, 81.20-81.975***
Support: 73.00-73.10**, 70.25-71.175***