Cattle Futures Surged Higher Last Week. Can the Rally Continue?
Long liquidation had been a theme in the livestock markets for the last several weeks, but that has likely come to an end with a sharp move higher in the back half of last week’s trade. These are the levels to watch for in today’s trade.
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Live Cattle (April)
April live cattle surged higher through the back half of last week’s trade, taking prices back to the highest levels in a month. For the week, April live cattle were $7.625 higher, which was just shy of a 4% gain. Resistance to start the week comes in from 200.80-201.975. This is a wider pocket than we would typically use, but with daily average ranges expanding, that’s what we are left with. The RSI is at 59.86, below what is considered to be overbought. We saw that as high as 77.86 at the January highs.
Resistance: 200.80-201.975***, 203.275**
Pivot: 197.92-198.70
Support: 196.00-196.60***, 194.45-195.47**, 192.85-193.075***
Daily Cattle and Beef Summary
Cutout values were firm on Friday afternoon with choice cuts 1.78 higher to 314.90 and select cuts 2.29 higher to 305.80. Friday’s slaughter was reported at 108k head.
The CME feeder Cattle Index is at 273.77 with the NBW Real-Time Index showing 276.00 as of this morning.
Seasonal Tendency Update
(updated 3.10.25)
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 Update
Friday’s Commitment of Traders report showed Funds net long 110,468 futures and options contracts, this was the fifth straight week of net selling. Keep in mind this data is only through Tuesday, so it doesn’t include the massive run higher in the back half of the week.
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