Cattle futures pop and lean hogs drop to start the new year of trade. Will this set the tone for Q1?

Live Cattle
Technicals (February – G)
February live cattle futures were able to breakout above the top end of the recent range which accelerated prices into our resistance pocket from 172.40-172.55 where the market fell flat (for now). If the Bulls can clear this hurdle it could open the door for an extension towards 174.75-175.25. Turbulence in the outside markets could be a potential near term headwind.
Resistance: 172.40-172.65***, 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.

Commitment of Traders Snapshot
(updated on Mondays)
Below is a snapshot of the most recent Commitment of Traders report which showed Managed Money (Funds) holding a net long position to the tune of roughly 17k contracts, one of the smallest net long positions they’ve had since the summer of 2022.

Feeder Cattle
Technicals (March – H)
March feeder cattle futures were able to trade higher to start the year, but it wasn’t the breakout move like we saw in live cattle as the top end of the trading range remains intact. If the Bulls can clear that it could open the door for an extension just north of 230, which was the breakdown point from November 24th. On the support side, the Bulls will want to defend our pivot pocket from 223.00-224.52.
Resistance: 226.85-227.925***, 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.

Commitment of Traders Snapshot
(updated on Mondays)
Below is a snapshot of the most recent Commitment of Traders report which showed Managed Money (Funds) holding a net short position to the tune of roughly 3k contracts, one of the largest net short positions they’ve had since the last January.

Lean Hogs
Technicals (February – G)
February lean hogs had a tough start to the new year as the market posted new contract lows which came with a new closing low. The Bulls desperately need to see a close back above 65.80-66.00 to halt the pressure. If they can achieve that, it could setup for a relief rally back towards the middle of the range which comes in closer to 69.00.
Resistance: 67.15-67.80***,72.00-72.50***
Pivot: 65.80-66.00
Support: 64.00-64.50**

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.

Commitment of Traders Snapshot
(updated on Mondays)
Below is a snapshot of the most recent Commitment of Traders report which showed Managed Money (Funds) holding a net short position to the tune of roughly 6k contracts, a relatively neutral stance when comparing it to the last 9 months.
