First The Sell-Off, But What’s Next for Cattle Markets?

Livestock Round Up Research Posts

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Live Cattle

Weekly Export Sales: Net sales of 13,600 MT for 2023 were down 21 percent from the previous week, but up 24 percent from the prior 4-week average. 

Technicals (December – Z)

A violent move lower on yesterday’s open took prices near our support pocket, 175.85-176.55. That was followed by a violent snap back may have been the capitulation the market needed to see to mark a near term low.  We expect volatility to continue, but not to the degree we’ve seen so far this week.  We like being Bullish on live cattle from these levels.  A break and close below support would neutralize that bias. 

Resistance: 182.00-182.50**, 184.625 -185.00**, 186.275**

Pivot: 180.325-181.00 

Support: 175.85-176.55***

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)

Violent moves up and down were seen yesterday in Feeder Cattle futures. We wouldn’t be surprised to see the volatility to continue through the remainder of the week but feel that the market will likely start to consolidate following what appeared to be some capitulation in yesterday’s trade.   There will likely be some good short-term opportunities for traders on both sides of the market, but managing the risk will be as important as ever. 

Resistance: 242.32-243.05***, 244.65**, 246.42

Pivot: 233.37-234.95

Support: 229.00-229.50**, 227.425**

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

Weekly Export Sales:  Net sales of 49,000 MT for 2023 were up 58 percent from the previous week and 77 percent from the prior 4-week average. 

Technicals (December – Z)

December lean hogs broke back below the 50-day moving average yesterday as the market continues to consolidate.  Good exports this morning may help the market stabilize.  The Bulls want to see the pivot pocket defended which we’ve outlined as 70.00-70.25.

Resistance: 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. 

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

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