Cattle futures were contained within the previous day’s trading range and lean hogs were mixed. These are the levels to keep an eye on for Friday’s trade.
Feeder Cattle
January feeder cattle futures traded within the previous day’s range which keeps support and resistance levels intact for today’s trade. We continue to lean on the “sell rallies” bias. A break and close above resistance would neutralize that bias. Significant support has held will over the last week from 239.62-240.15. A break and close below there could trigger additional technical pressure.
Resistance: 246.82-247.60***, 249.85-250.80****
Pivot: 243.00-243.95
Support: 239.62-240.15***, 237.50-237.95****
Seasonal Tendency Update
Below is a look at historical price averages for January futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results). Looking at this chart, it looks like November can be a pretty choppy and indecisive month for price trends.

Commitment of Traders Report
Friday’s Commitment of Traders report showed Funds were net sellers of about 500 contracts, which snapped the 6 week buying streak. Funds are net long about 7.7k contracts.

Lean Hogs (February)
December lean hogs were lower yesterday while the deferred contracts were able to gain ground. Technical levels remain intact as we enter the last trading day of the week. The market is in a clear uptrend, but we continue to feel that buying interest could dry up here with many of those who want to be long, already long. A record long position can continue to grow, but we feel the higher velocity risk is to the downside which you see positions this extended.
Resistance: 86.225**
Pivot: 83.97-84.30
Support: 82.05-82.27***, 80.90-81.20****
Commitment of Traders
Friday’s Commitment of Traders report showed funds were net buyers of about 14.5k contracts, nearly all of that coming from new longs. That expands the net long position to 107,169, a new record. Broken down that is 119,028 longs VS 11,859 shorts.

Seasonal Tendency Update
Below is a look at historical price averages for February futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results).

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