Livestock Futures Roundup - Live Cattle and Lean Hogs

Meats Market Update

Meats Market Update

Livestock Futures Commentary

Live Cattle (February)

February live cattle started the day under pressure but caught a bid, midday as the cash trade started to pick up. It started with the Fed Cattle Exchange which sold 283 at an 116 weighted average. This isn’t anything to write home about, but based on the market’s reaction, it was clearly better than expected. We still believe that the market will have a tough time breaking out above our resistance pocket, 125.775-126.30. This pocket represents recent highs and the contract highs from the middle of April. We like playing the short side unless we start seeing consecutive closes back above resistance. Estimates for the Friday’s Cattle on Feed report are as follows: On Feed: 101.3%, Placements 112.7%, and Marketings at 100.0%.

Resistance: 125.775-126.30****

Support: 123.125-123.40***, 121.775-122.00**, 117.70-118.325****

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Feeder Cattle (January)

January feeder cattle tried to break lower, but our technical support pocket managed to hold, again. We have had that defined as 142.225-143.15. If the bears can break the market below technical support, we could see a whoosh lower, the next objective coming in closer to 139.00. We like leaning on the short side here but need to see yesterday’s highs defended.

Resistance: 146.85-147.975****, 152.25-152.80**, 159.725****

Pivot: 144.50-145.00

Support: 142.225-143.15***, 138.65-139.00****

 

Lean Hogs (February)

Yesterday’s session was as constructive as it gets, but the lack of follow-through early on today was a big caution flag for the bull camp. We noted that the bulls needed to steak a claim and defend prices above 70.00 to get more comfortable. The inability to rally invited sellers back in and likely sparked some forced liquidation from margin and risk departments. The next support pocket we are looking at comes in from 65.45-66.05.

Resistance: 71.40-71.80**, 74.15-74.55***, 75.975-76.625****

Pivot: 70.00

Support: 65.45-66.05***, 63.675**

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