Livestock futures get hit hard on Monday. A sign of things to come?
Oliver Sloup was on RFD-TV Monday morning, sharing his thoughts on the recent price action in the grain and livestock markets!
Live Cattle
Technicals (October – V)
October live cattle futures broke back to retrace the big move we saw last Thursday. The uptrend remains intact, but we continue to urge caution for the Bull camp as we approach a time of year that has historically been tough for the market to rally. That coupled with lingering headline risk may be enough to keep Managed Money participation minimal.
Monday afternoon’s daily livestock summary showed cutout values firming up with choice cuts 1.04 higher to 314.81 and select cuts 4.06 higher to 301.52. The 5-area average price for live steers was reported at 195.21. Monday’s slaughter was reported at 115k head.
Resistance: 190.35-191.00***
Pivot: 187.60-188.55
Support: 184.00-185.00, 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 gave back the games from Thursday and Friday, and then some. The market was able to hold the low end of the recent range but a break and close below support from 253.40-254.35 and we could see the selling accelerate. The next support pocket would come in near 251, and below that is closer to 246.
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.

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