Live Cattle Futures Commentary
Live Cattle (April)
April live cattle managed to work back towards yesterday’s/last week’s highs, just shy of 116. Front months managed to rally on a firmer cash trade, 101.00-101.25. Firmer cash trade was expected to come into the week so bulls should temper expectations. This could be more short covering and position squaring as we head closer to Friday’s Cattle on Feed report. Estimates are as follow: Cattle on Feed: 99.3, Placements: 93.7, Marketings: 98.3.
Resistance: 115.45-115.75***, 116.60-117.425***
Support: 113.95**, 111.60-112.25**, 109.375-110.175****
Feeder Cattle Futures Commentary
Feeder Cattle (November)
November feeder cattle took out yesterday’s high, finishing the session at the 50-day moving average. This is the top end of the range over the last month, so from a risk/reward perspective, the bears have the advantage. With that said, the market has been resilient this week which could take us to fill the gap from August 9th, 137.90-138.25.
Resistance: 135.00-136.00***, 137.90-138.25****
Support: 130.00***, 127.325-127.975
PM Boxed Beef / Choice / Select
Current Cutout Values: / 218.24 / 191.97
Change from prior day: / (1.53) / (1.94)
Choice/Select spread: / 26.27
Lean Hogs Commentary
Lean Hogs (December)
December lean hogs traded on both sides of unchanged today as the market grapples with the recent volatility. Last week’s big run higher did leave several gaps on the chart, which causes some concern for new buyers at these levels. We would like to have more conviction with a long bias but believe there will be a better opportunity in the not so distant future.
Resistance: 70.60**, 72.70**, 80.00****
Support: 66.75-67.125**, 64.20**