Traders Gear Up for Another Cattle on Feed Report
Cattle futures consolidate ahead of the Cattle on Feed report as they approach inflection points on the chart. Lean hogs see continued selling pressure and are threatening a bigger breakdown.
Live Cattle (April)
April live cattle futures propped lower yesterday but were able to defend the lows from Wednesday, which is a silver lining for the Bulls. A break and close below this week’s lows from 193.025-193.075 could reaccelerate the long liquidation from Funds with the next downside objective coming in from 189.80-190.75. With that said, the cash market along with technical support may be able to keep things in check. If you’re Bullish this may present a good risk/reward setup as it’s pretty clear where the appoint point is. If the Bulls can find their footing and close back above our pivot pocket, we could see futures continue to converge with cash.
Resistance: 199.70-200.00***, 201.975-203.00***
Pivot: 194.45-195.47
Support: 193.025-193.075**, 189.80-190.75***
Cattle on Feed Estimates
On Feed: 98.8 – 99.9%
Placements: 100.0 – 106.1
Marketings: 101.3 – 102.5
Daily Cattle and Beef Summary
Cutout values were lower on Thursday afternoon with choice cuts 126 lower to 312.63 and select cuts .58 lower to 303.18. Yesterday’s slaughter was reported at 117k head.
The CME feeder Cattle Index is at 278.51 with the NBW Real-Time Index showing 281.59 as of this morning.
Seasonal Tendency Update(updated 2.19.25) Below is a look at historical price averages for April futures on a 5, 10, 15, 20, and 30 year time frames (Past performance is not necessarily indicative of future results). |
Commitment of Traders UpdateFriday’s Commitment of Traders report showed Funds net long 136,369 futures and options contracts. |
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