Livestock Futures Trade -Live Cattle, Feeder Cattle, Lean Hogs

January 15, 2020 08:20 AM
Live Cattle support 124.55-125.10
Lean Hog resistance pocket from 70.00-70.40 was killer for the bull camp
Meats Market Update

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Livestock Futures Commentary

Live Cattle (February)

February live cattle traded on both sides of unchanged today as prices remain largely range-bound. We apologize for sounding like a broken record, but that’s what a range-bound trade will do. Resistance remains intact from 127.225-127.90, above there is uncharted territory and finding meaningful resistance becomes more difficult. On the support side of things, 124.55-125.10 is the pocket we are keeping an eye on, a break and close below there could trigger long liquidation from the funds.
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Resistance: 127.225-127.90***

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

Feeder Cattle (March)

March feeder cattle saw follow-through pressure in the early morning trade but managed to finish the day near unchanged. 146.85-147.975 has been our resistance pocket for some time now. Consecutive closes above here leaves the door open for an extension towards the contract highs from April, 157.625. This wouldn’t be a longer-term technical target, not something you’d see over the course of a few weeks. A failure at resistance keeps the market range-bound which could take us back to support from 142.85-143.125. The 50-day moving average comes in at 144.275.

 

Lean Hogs (February)

February lean hogs managed to defend our 4-star technical support, we’ve listed that as 65.40-65.50, the low end of December’s range. The market managed to rally today, for no real reason. We saw a dip towards the close with reports that tariffs were going to remain in place, but the market quickly moved passed this and finished near the high end of the day’s range. Significant resistance comes in from 70.00-70.40. The bulls MUST achieve consecutive closes above here to encourage a wave of new buying.

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

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

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