Live Cattle Futures Commentary
Live Cattle (April)
Cattle futures were mixed to start this week’s trade with December fats little changed and the Aprils marking their highest price since July. We admittedly got a little ahead of our self, thinking that April the other contract months would try to catch their breath a little more after such a big rally. April futures are official “Overbought” but not to the extreme levels that might suggest an imminent pullback. 119.95-120.50 is the resistance pocket to keep an eye on over the coming sessions. For the December contract, everyone and their (cattle) dog is watching the gap left from August 9th at 111.175.
Feeder Cattle Futures Commentary
Feeder Cattle (November)
Feeder cattle were down on the day and you might think that that makes sense because corn caught a bid on the back of a bullish 2.11 billion bushel carryout. At first glance, it’s an ah-ha moment, but feeders marked their lower an hour and a half before the report. That correlation has been about as reliable as “turnaround Tuesday” that gets everyone all excited (still don’t know why). 143-144 continues to be a big roadblock that the bear camp needs to defend, a breakout above here opens the door for a swift move higher. The gap from last Monday is on our radar for support, which comes in at 137.75, with the 100-day moving average just above at 138.45.
Lean Hogs Commentary
Lean Hogs (December)
Lean hogs started the day with a gap lower on what was thought to be a bearish Hogs & Pigs report on Friday. That report and the Cattle on Feed reports are about as useful as a snowblower in Hawaii. The market reversed and managed to mark its highest price since July 31st. If the bulls can find some follow-through tomorrow, we could see prices march back towards 80.00, the area where we started to roll over at the end of July.