Live cattle futures have had a strong start to the year but have been consolidating over the last three sessions. Are we endearing the top or is the market just catching it’s breath?

Live Cattle
Technicals (April- J)
April live cattle futures bumped their head up against last week’s highs and couldn’t get much more going which may have led to a light round of profit taking to start the week. If the profit taking continues into today’s trade we will be looking for our pivot pocket to hold from 184.65-185.00. This pocket represents previously important price points along with trendline support. A break and close below this pocket could spur additional short term technical weakness.
Yesterday’s daily livestock summary showed the 5-area average price for live steers at 181.15, firm from previous reports. daily slaughter was reported at 115k head.
Resistance: 187.30-187.55***
Pivot: 184.65-185.00
Support: 182.60-183.45**, 180.50-181.45***

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)
Funds were net buyers of nearly 10k contracts in the most recent Commitment of Traders report, marking the third straight week of buying which has expanded their net long position to 36,088 contracts. Historically this would be viewed as a neutral position.

Feeder Cattle
Technicals (March – H)
March feeder cattle futures continued to climb higher yesterday, working into our first resistance pocket from 248.25-249.025. The steady grind higher takes us closer to the breakdown point from October 19th, which comes in closer to 253.10. This would likely act as stiff resistance on the first test.
Resistance: 248.25-249.025***, 253.10**
Pivot: 244.00-245.00
Support: 242.12-242.35***, 237.57-238.92***

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)
(updated on Mondays)
Funds were net buyers of feeder cattle for the sixth consecutive week, which has taken them from net short to net long 5,641 futures/options contracts.

Lean Hogs
Technicals (April- J)
April lean hogs traded on both sides of unchanged yesterday, settling darn close to unchanged as well. Support remains intact from 79.425-80.00. A break and close below that pocket could spark additional selling pressure with the next line in the sand coming in at 77.25. On the resistance side, our pivot pocket from 82.67-82.80 is the hurdle the Bulls want to get back out above.
Resistance: 83.60-84.00***, 85.50-86.05****
Pivot: 82.67-82.80
Support: 79.425-80.00***, 77.25**

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 expanded their net long position to 31,647 futures/options contracts, back near levels from the Fall.
