Cattle futures were under heavy pressure through the month of October but managed to recover some of those losses over the last week. Will the recent strength continue now that we are in a new month of trade?
Live Cattle
Technicals (December – Z)
December live cattle futures traded further into the gap yesterday but fell just shy of filling it. That keeps resistance intact from 183.65-184.625. If you have a bearish bias, this may be a pocket to consider looking to the short side. If you had been long, this may be a pocket to consider reducing.
Resistance: 183.65-184.625****
Pivot: 182.00-182.50
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)
January feeder cattle squeaked out a higher close in yesterday’s trade but as mentioned in yesterday’s report, the recent rallies have been peanuts relative to the selloff we saw through the month of October. Typically, you’d like to see buyers more excited to step in after such a sharp move lower and then consolidation. The Bulls want/need to see a close above 239-240 to spark that bigger relief rally.
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 hogs were higher yesterday, testing the previous day’s high and the 50-day moving average. We’ve outlined that resistance pocket as 71.92-72.10. A failure to continue the rally and close above this pocket could lead to a retracement of the recent gains.
Resistance: 71.92-72.10***, 74.00-74.500***
Pivot: 70.00-70.25
Support: 67.32-67.80***, 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.
