Livestock markets were choppy in Thursday’s trade. Outside markets are risk-on following strong economic data. Will that act as a tailwind in today’s trade?
Live Cattle (December)
December live cattle futures made new highs for the move but reversed to finish the day back near the low of the day’s range. That failure against resistance from 187.675-188.00 keeps that pocket intact for today’s trade. On the support side, 184.22-184.55 is the pocket for the Bulls to defend. Outside markets are in risk-on mode in the early morning trade following a big beat in the non-farm payroll report, this could add a tailwind to cattle if that strength continues through the day’s session. Yesterday’s 5parea average price for live steers was reported at 186.79. Cutout values were slightly lower yesterday afternoon.
- Resistance: 187.675-188.00***
- Pivot: 184.225-184.55
- Support: 181.325-182.07, 179.10-179.97
Feeder Cattle (October)
Feeder cattle futures caught their breath in yesterday’s trade, trading both sides of unchanged and finishing the day under slight pressure. Resistance remains intact from 249.85-250.80. A move out above there and 254-255 would not be out of the question. On the support side, 245.90-246.50 is the pocket the Bulls need to continue defending. A break and close below there could spark additional technical selling.
- Resistance: 249.85-250.80*
- Pivot: 245.90-246.50
- Support: 242.75-243.45, 239.62-240.15***
Lean Hogs (December)
Lean hogs saw a choppy session, trading in a nearly $2 range, which was still an inside day (trading within the previous day’s range. If the Bulls can defend the lower end of our pivot pocket at 75.25 we could continue to see strength towards 79. A break and close below the pivot pocket could take us back to the recent lows near 72.50.
Weekly Export Sales
Pork: Net sales of 43,400 MT for 2024 were up 55 percent from the previous week and 61 percent from the prior 4-week average.
- Resistance: 77.72, 78.70-78.97*
- Pivot: 75.25-76.00
- Support: 73.85-74.07, 72.00-72.85*
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