Cattle markets have come under fire over the last several sessions as long liquidation from Funds has pressured prices back to levels not seen since June. Is the market nearing a bottom or is there more selling to come?
Live Cattle
Technicals (December – Z)
Expanded limits for 10/24/2023: 10.00
Live cattle got hit hard in yesterday’s trade which gives us expanded limits for today’s trade, $10.00. Yesterday’s move lower started with Friday’s Bearish cattle on feed report. On top of that there was a well-known hedge fund manager who noted that the economy is slowing a lot faster than data suggests (not surprising), but none the less that may have added a spark for fund managers to liquidate longs. Long liquidation is something we’ve been nervous about in this market for many months and yesterday provides an example of what a narrow exit door in the cattle market looks like. So what does today hold? TBD. But you can expect volatility to remain elevated as yesterday’s trade may have morphed into an emotional one where outside forces like risk-departments stepping in also play a role.
Resistance: 182.00-182.50***
Pivot: 180.35
Support: 175.85-176.55***, 172.80-172.90**
Seasonal Tendencies
Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).
*Past performance is not necessarily indicative of futures results.
Feeder Cattle
Technicals (January – F)
Expanded limits for 10/24/2023: 12.25
Escalator up, elevator down is an old saying that has shown life over the last week in the feeder cattle market as extensive selling pressure has taken prices to levels not seen since June. The selling has taken the RSI (relative strength index) to 21, a new low for the January contract. Today’s session will undoubtedly be a rollercoaster ride so be sure to keep your arms and legs inside the ride at all times.
Resistance: 242.32-243.05***, 246.42
Pivot: 239-240
Support: 233.37-234.95***, 229.00-229.50**
Seasonal Tendencies
Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).
*Past performance is not necessarily indicative of futures results.
Lean Hogs
Technicals (December – Z)
December lean hog futures were able to hold ground and consolidate in yesterday’s trade. The Bulls want to see a close back above 67.32-67.80 to start to neutralize some of the technical damage that has been done over the last few weeks.
Resistance: 70.775-70.90**, 74.00-74.500***
Pivot: 67.32-67.80
Support: 65.40-65.67**
Seasonal Tendencies
Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).
*Past performance is not necessarily indicative of futures results.
