Cattle futures have been able to rally back to levels not seen since late fall. Will the rally continue?

Live Cattle
Technicals (April- J)
April live cattle futures overtook February in terms of trade volume. They were also able to gain on February in terms of price yesterday, climbing to nigh highs (for the move). There is quite a bit of resistance here as you can see from the blue channel on the chart below. This was a breakout point in the spring and a breakdown point in the fall. We wouldn’t be surprised to see consolidation against this pocket in the near term.
Resistance: 175.70-176.40***
Pivot: 173.50-174.00
Support: 172.27**, 170.50-171.00***

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)
Fund positioning in live cattle was relatively flat last week with funds still hovering near a net long position of 14k contracts.

Feeder Cattle
Technicals (March – H)
March feeder cattle futures were able to post new highs for the move in yesterday’s trade, finally making it back to the breakdown point from November 24th. If the Bulls can chew through 230.00, it could extend the rally towards the 236.00 area. A failure to find momentum above 230 could bring about a round of profit taking and consolidation back to the 227 neighborhood.
Resistance: 230.00**, 234.52-235.70***
Pivot: 226.85-227.925
Support: 223.00-224.52**, 221.10-222.72***

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)
Friday’s Commitment of Traders report showed funds were net buyers have been buying futures but still hold a net short position of about 2.5k futures and options.

Lean Hogs
Technicals (February – G)
February lean hogs were able to defend the downward sloping channel that previously acted as resistance. If the Bulls can get back out above 72.00-72.50, we could see the market build up for a bigger directional move. With that said, the shot clock is winding down on the February contract and volume is starting to shift out to April
Resistance: 72.00-72.50***, 75.00**
Pivot: 67.15-67.80
Support: 65.80-66.00**, 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 17k contracts.

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