December live cattle managed to work into our resistance pocket today, we have defined that as 111.175-111.50, this pocket represents previously important price points, including the gap from August 9th.
Lean hogs started the day with a gap lower on what was thought to be a bearish Hogs & Pigs report on Friday.
Livestock futures gapped higher to start the week, this on the back of a friendly cattle on feed report and a revision to Friday’s headline suggesting China canceled the U.S. farm field trip.
April live cattle managed to work back towards yesterday’s/last week’s highs, just shy of 116.
It has been a race to zero between cash cattle and the board, yesterday cash made another big drop with reports of 96 in the South and 97 being paid in the North by a major.
Live cattle futures traded to firm up but ended the session near unchanged after trading on both sides. We continue to question the value in front-month futures.
October lean hogs managed to put a tourniquet on today, finishing at session highs, a stone throw from limit up. The consolidation from Monday’s session is all you can ask for if you’re in the bull camp
With the sun-rising and the panic in the outside markets subsiding, it is possible we get a more normal trading session today for livestock.
October live cattle broker lower on the open on the back of a tweet from President Trump regarding Trade with China; “China was supposed to start buying our agricultural product now - no signs that they are doing so.
In lean hogs, on a seasonal basis, we have generally tighter supplies from the start of the year into April. After late April, supply takes a more dramatic decline into the year's lows in the summer. That does not mean price goes straight up in this period. Spring is a period where a little shake-up is normally seen. Traders are aware of a slight slump in prices from the minor February or March peak into spring.