Cattle and lean hogs were strong through last week’s trade. Can we see the momentum continue through the start of this week’s trade?
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Live Cattle (December)
December live cattle futures broke out on Friday, which caught us a little off guard because it was a head of a Cattle on Feed report. The report ended up being pretty neutral, so it’ll be interesting to see how prices respond through this morning’s trade. 4-star resistance remains intact from last week’s reports, 183.57-184.22. A close above there could spark another “whoosh” higher. With that said, if you’re a hedger and need to protect price, this would be a spot to consider doing so. Options can be a great tool in this environment to get that protection while keeping the upside open.
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 Snapshot
- On Feed: 101%, in line with estimates
- Placements: 99%, in line with estimates
- Marketings: 96%, in line with estimates
Commitment of Traders Update
Friday’s Commitment of Traders report showed another week of flatlining for Fund positioning, important to note that the data is through Tuesday, so it does not include positioning with the rally we saw at the end of the week. Funds are net long roughly 44k futures/options contracts. We view this as a historically neutral position.

Feeder Cattle (October)
October feeder cattle futures traded on both sides of unchanged on Friday, notching out a small gain but with significantly less conviction than that of live cattle. First resistance remains intact at 245.90. Seasonal tendencies have had us less optimistic on a longer-term feeder cattle rally. Grains are firm in the early morning trade and are knocking on the door of resistance, if strength persists there it could be an added headwind to the market.
- Resistance: 245.90, 249.85-250.80*
- Pivot: 242.75-243.45
- Support: 239.62-240.15, 236.20-236.75*
Commitment of Traders Update
Friday’s Commitment of Traders report showed funds were net buyers of roughly 1.7k futures/options contracts, trimming their net short position to just 870 contracts.

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