Cattle futures were able to stage an impressive rally late yesterday afternoon as participants position into Friday’s Cattle on Feed report.
Live Cattle
Technicals (February – G)
February live cattle were able to pullback and defend support which we outlined as 168.00-168.50. That price action was friendly which could keep the momentum going this morning, barring any madness from the outside markets like we saw late afternoon yesterday. Resistance comes in from 172.40-172.55.
Weekly Export Sales: Net sales of beef at 9,700 MT for 2023 were down 8 percent from the previous week, but up 44 percent from the prior 4-week average.
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 had a nice move higher in yesterday’s trade with a close above resistance at 224.52. This will now act as support. So long as the Bulls can defend that level through today’s trade we could see a continuation higher. A break back below the pivot pocket would likely lead to a sideways trade.
Resistance: 232.20-233.50***
Pivot: 223.00-224.52
Support: 216.40-218.00***, 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 opened lower and attempted to trade back higher but ultimately fell short. Our pivot pocket from 69.00-69.50 will be monitored closely in today’s trade. A failure to defend that area cold open the door for a drop back down near the low end of the recent range, 64.15-67.80.
Weekly Export Sales: Net sales of pork at 37,500 MT for 2023 were up 33 percent from the previous week and 48 percent from the prior 4-week average.
Resistance: 72.00-72.50***, 75.00-76.00***
Pivot: 69.00-69.50
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