Cattle futures rallied to end the week, but the Bulls still have plenty of work to do to get the technicals back in their favor.

Live Cattle
Technicals (February – G)
February live cattle futures were able to stage an impressive recovery on Friday, but these recovery rallies have been short lived. The Bulls will want to see follow through this week or at the very least stabilization. A close back above 168.00-168.50 could spark the healing process. Friday’s Commitment of Traders report showed Managed Money holding a net long position of 27,723 futures/options contracts, the smallest net long position since July of 2022. In May of 2022 that net long position got as small as 12,085 futures/options contracts.
Our inhouse CMT (Chartered Market Technician) did note a bullish divergence taking place in Friday’s 2 Minute Drill, you can watch that here: Watch Now!
Resistance: 168.00-168.50****, 174.75-175.25***
Pivot: 166.25
Support: 162.25-162.60***,160.50-161.00**

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 had a nice move higher on Friday but as with live cattle, these relief rallies have been short lived. The Bulls need to see some follow-through and stabilization this week to feel more confident in thinking that a near term low may be in. The barrier we will be keeping a close eye on comes in from 216.40-218.00, which was tested twice last week.
Resistance: 223.00-224.52***, 232.20-233.50***
Pivot: 216.40-218.00
Support: 209.00-210.00**

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 (February – G)
February lean hogs were able to rally on Friday, but it did little to alleviate the losses for the week. The Bulls want to see a close out above 70.00 to spark a move back to 71.50-72.00. A failure to do so keeps the Bears comfortably in charge of the chart and keeps the door open for a retest of the low.
Resistance: 74.00-74.500***
Pivot: 71.50-72.00
Support: 67.15-67.80***, 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.

Oliver Sloup, VP & Co-Founder, Blue Line Futures