Thankfully The Cattle Market Doesn’t Trade Overnight

January 8, 2020 08:20 AM
Meats Market Update

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Livestock Futures Commentary

Live Cattle (February)

If we had follow-through pressure overnight and through the morning in the outside markets, we would expect to see that spill over into weakness in cattle. Thankfully for the cattle market, it doesn’t trade overnight, and participants have the ability to digest information like this as opposed to reacting on emotion. The market did move lower in yesterday’s session but managed to close off the lows. The market posted an inside day, leaving support and resistance levels unchanged. Cash cattle have yet to pick up, but the benchmark is last week’s sales from 124-125 live and 198-200 dressed.

Resistance: 127.225-127.90***

Support: 124.55-125.10***, 123.125-123.85****

Feeder Cattle (January)

March feeder cattle dropped hard yesterday morning but managed to defend the 50-day moving average at 143.90. If the bears can break below yesterday’s lows, we would expect to see a continuation towards the low end of the range and our 4-star support pocket from 142.85-143.125.

Resistance: 146.85-147.975****

Support: 142.85-143.125****, 141.55-141.775**

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Lean Hogs (February)

February lean hogs had a choppy session but managed to close near the highs, a ray of light for the bull camp following technical damage in the previous two sessions. We are still optimistic on prices but need to see consecutive closes above 70.00-70.40.

Resistance: 70.00-70.40***, 72.075**, 73.95-74.35****

Support: 69.325-70.05****, 65.40-66.50****, 63.675**

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