Cattle futures surge higher, can the momentum continue into today’s Cattle on Feed report?
Live Cattle (December)
December live cattle traded into the upper end of our first resistance pocket yesterday, we’ve outlined that as 181.325-182.07. If you’ve been long the market off the double bottom low, this may be a spot to consider reducing exposure. If you’re bearish or need to hedge, this may be a spot to look at taking a position ahead of this afternoon’s Cattle on Feed report. We think there is upside potential yet in live cattle but would not be surprised to see the market catch it’s breath.
Yesterday’s 5 area average for live steers was at 183.16. Cutout values were weaker with choice cuts down 1.82 to 299.56 and select cuts down 1.49 to 288.26. Daily slaughter was reported at 122k head, slightly under last week and year.
- Resistance: 181.325-182.07, 183.57-184.225*
- Pivot: 179.10-179.97
- Support: 175.72-176.10, 173.17-173.87
Cattle on Feed Estimates
Seasonal Tendency Update
Past performance is not necessarily indicative of future results
Below is a look at this year’s price action (black line) VS price averages for December live cattle over 5, 10, 15, 20, and 30 year periods.
Feeder Cattle (October)
October feeder cattle broke out above the top end of the recent range which accelerated the buying above the top end of resistance, that pocket from 242.75-243.45 will now act as support. If the Bulls can continue the momentum into next week’s trade, there is air above the market for further recovery, but we would likely be looking at that as an opportunity to look back at the short side for clients who need to hedge or are looking to play a seasonally bearish time of year.
- Resistance: 245.90, 249.85-250.80*
- Pivot: 242.75-243.45
- Support: 239.62-240.15, 236.20-236.75*
Seasonal Tendency Update
Past performance is not necessarily indicative of future results
Below is a look at this year’s price action (black line) VS price averages for October feeder cattle over 5, 10, 15, 20, and 30 year periods.
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