Outside markets are stabilizing in the early morning trade, can that help halt the decline in the livestock markets?
Live Cattle
Technicals (December – Z)
December live cattle futures broke below our pivot pocket which spurred a wave of long liquidation that dropped prices below our support pocket from 186.00-186.27. Uncertainty in the outside markets as interest rates continued to scream higher was a likely catalyst. Previous support will now be resistance, so 187.25-187.72 will be the pocket to keep a close eye on. A failure to get back out above here likely give the Bears the near-term technical advantage.
Resistance: 190.17***, 191.50-192.05***
Pivot: 187.25-187.72
Support: 186.00-186.27***, 183.40-184.10**
Seasonal Tendencies
Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).
Feeder Cattle
Technicals (November – X)
In yesterday’s report we noted that a break below trendline support “could pressure prices back towards the 100-day moving average near 250.00.”. The 100-day moving average held pretty well, which may offer some relief early this morning. However, there has been some technical damage, and the Bulls need to see a close back above 253.50-255.00 to neutralize that.
Resistance: 257.47-258.45***, 262.07****
Pivot: 253.50-255.00
Support: 249.50-250.10**, 246.70-247.72***
Seasonal Tendencies
Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).
Lean Hogs
Technicals (December – Z)
Lean hogs continued to bleed lower yesterday, albeit at a slower pace. If the bulls fail to find their footing, the next line in the sand for support comes in from 67.32-67.80, which was the lows from the end of May.
Resistance: 74.50-74.60***, 77.70-78.10***
Pivot: 70.775-70.90
Support: 67.32-67.80**
Seasonal Tendencies
Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).
