Cattle futures had an impressive end to the week as prices test the upper of the range that dates back to last Fall’s breakdown. Is there more upside left or will seasonality halt the rally?
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Live Cattle
Technicals (October – V)
October live cattle futures finished the week near its highest levels since last Autumn. The chart looks strong, now doubt about it, but August has historically been a tricky month for futures to extend their rally. Will this year be on trend or more of an outlier? TBD.
Friday afternoon’s daily livestock summary showed cutout values firming up with choice cuts 1.31 higher to 313.77 and select cuts 2.35 higher to 297.46. The 5-area average price for live steers was reported at 193.13. Friday’s slaughter was reported at 110k head, which put the weekly total at 590k, about 17k less than the same period last year.
Friday’s Commitment of Traders report showed Funds expanding their net long position by about 3.5k contracts, to 61,876 futures/options. Broken down that is 86,844 longs VS 24,968 shorts.
- Resistance: 190.35-191.00***
- Pivot: 187.60-188.55
- Support: 185.77-185.87, 181.725-182.25*
Below: Daily chart of October live cattle

Below: Seasonal Tendencies for October live cattle. Past performance is not necessarily indicative of future results.

Feeder Cattle
Technicals (August – Q)
August feeder cattle futures were able to gain some ground at the end of last week, but prices remain stuck in a wedge. Is the market building up energy for a bigger directional move? TBD. As with live cattle, we continue to error on the side of caution when we turn the calendar over into August, which has historically been a tough month for futures to stage meaningful rallies.
- Resistance: 259.65-260.25, 262.25-263.00*
- Pivot: 256.125-256.70
- Support: 253.40-254.35*, 250.80-251.125
Below: Daily chart of August feeder cattle, dating back to November.

Below: Seasonal Tendencies for September feeder cattle. Past performance is not necessarily indicative of future results.

Lean Hogs
Technicals (October – V)
October lean hogs have had a nice run in the back half of July but have found resistance from 78.75-79.42. This pocket has been an inflection point for the better part of the last year with it acting as support last Autumn and the eventual breakdown point in June.
Friday’s Commitment of Traders report showed Funds trimming their net short position by about 7k futures and options contracts through 7/23. The Fund net short position is down to 4,430 contracts, broken down that is 54,589 longs VS 59,019 shorts.
- Resistance: 78.75-79.42, 81.80-82.00*
- Pivot: 76.50-77.25
- Support: 74.55-75.00, 72.42-72.475

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