Live cattle, feeder cattle, and lean hogs were all able to post gains last week. Will that momentum continue into the end of the year?

Live Cattle
Technicals (February – G)
February live cattle futures staged their most constructive week in what seems like a lifetime. The close out above our pivot pocket from 168.00-168.50 opens the door for an extension towards 172.40-172.55. A failure to defend that pivot pocket could lead a small downdraft. All in all, we wouldn’t be surprised to see consolidation in the final weeks of the year, which would be healthy for the market. Friday’s Commitment of Traders report showed Managed Money (Funds) holding a net long position of just 22,706 futures/options contracts. Historically this would be viewed as neutral to bearish positioning (Funds very rarely go net short live cattle).
Resistance: 172.40-172.55***, 174.75-175.25***
Pivot: 168.00-168.50
Support: 166.25**, 162.25-162.60***

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 (March – H)
March feeder cattle futures continued to move higher on Friday with the market knocking on the door of our first resistance pocket 223.00-224.52. If the Bulls can chew through that pocket it could spark another wave of technical buying. With that said, it is a holiday week so expectations of big moves should be tempered, especially when we get to the back half of the 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 erased about two weeks of losses in just two sessions last week, taking prices back into our pivot pocket from 71.50-72.00. If the Bulls can clear this hurdle it could lead to an extension towards 75.00-76.00.
Resistance: 75.00-76.00***
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