February Cattle has closed between 123.85-126.00 for 24 of the last 26 sessions
Cattle futures current trend has been sideways and boring
Roll December Hog futures by the end of the week
Meats Market Update
Livestock Futures Commentary
Live Cattle (February)
Live cattle traded on both sides of unchanged today, finishing the session in the middle of the range from the last month, 125ish. The February contract has closed between 123.85-126.00 for 24 of the last 26 sessions. The current trend has been sideways and boring, but we are still leaning on the short side. If the bears can defend 126, we could see a bearish head and shoulders formation forming. Cash cattle was steady to firm last week coming in from 118-120. If cash stalls and/or retreats, this could sprain (not break) the board lower.
January feeder cattle finished today’s session in positive territory but failed to change the bearish technical landscape. A bearish head and shoulders pattern remains intact until the bulls can achieve consecutive closes above 143.275-143.70. There is minor support from 139.625-139.90, but the more significant support pocket comes in from 138.15-138.85. Below this pocket, there’s a lot of air, with the next meaningful support coming in closer to 134.
Lean Hogs (February)
If you are in December hog futures, you will want to roll by the end of the week, if you have not already. February lean hogs started the week on softer ground but managed to defend the bottom end of the recent range, 65.40-66.50. If this gives way, we would expect to see a leg lower and potential retest to the August lows, 63.675. The bulls need to see a move out above technical resistance to encourage new buying activity, that comes in from 69.325-70.05.