Live Cattle Futures Hold Support Amid Market Watchfulness: A Comprehensive Commodity Update

Live Cattle
Technicals (April- J)
April live cattle futures pulled back to trendline support yesterday and were able to defend it, which keeps the Bull’s in the driver’s seat for the time being. However, a break and close below could spark a drop back into support from 182.60-183.45. Outside markets will continue to be monitored closely after yesterday’s CPI print that came in hotter than expected, which raised concerns over the prospect of higher for longer rates.
Yesterday’s daily livestock summary showed weaker cutout values in the afternoon with choice cuts down 1.81 to 292.27 and select cuts down 1.72 to 285.30. Daily slaughter was estimated at 125,000.
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 cooled their jets for a minute yesterday, finishing the day slightly lower. Resistance remains intact from 248.25-249.025. If the Bulls can chew through this pocket we could see an extension of the rally take us up towards 253, which was the breakdown point from October. A failure against resistance and a pullback to our pivot pocket from 244.00-245.00 is in the cards.
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)
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 hog futures continue to be choppy to start the week as the market seems to have settled down near the middle of this year’s trading range. Support remains intact from 79.425-80.00. Resistance comes in from 82.67-82.80.
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.
