Cattle Futures Continue to Run Higher
Feeder cattle futures make new contract highs, are new highs for live cattle next? Can lean hogs join the rally?
Daily Cattle and Beef Summary
Cutout values were stronger on Monday afternoon with choice cuts 2.89 higher to 307.90 and select cuts 1.58 higher to 307.90. Monday’s slaughter was reported at 114k head. Monday’s 5-area average price for live steers was reported at 205.30.
The CME feeder Cattle Index is at 283.27 with the NBW Real-Time Index showing 284.22 as of this morning.
Feeder Cattle (April)
April feeder cattle futures made new contract highs yesterday. Like live cattle futures prices, the sharp move higher in feeders over the last two weeks has not been enough to move the RSI into overbought territory, though it is close with a reading of 68.94. We saw a reading as high as 79.85 in November of last year. This market continues to look resilient as it doesn’t seem like anything can stop it. With markets at contract highs, finding the next meaningful point of technical resistance becomes an even tricker task. Bulls have clear control, only a close back below 278.35-279 would start to put that into question.
- Resistance:
- Pivot: 281.525
- Support: 278.35-279.00****, 276.00-276.825***, 273.50-274.65***
Seasonal Tendency Update
(updated 3.17.25)
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 Report
Friday’s Commitment of Traders report showed Funds holding a net long position to the tune of 28,767 futures contracts, little changed from the prior week which continues nearly 2-month trend of little change.
Lean Hogs (April)
April lean hogs traded back into resistance from 88.00-88.70. If the Bulls can chew through and close back above this pocket, it would not be so crazy to think we could see a move back higher like we’ve seen in the cattle complex. This week’s price action could have big implications in the tone for the rest of the month. Keep in mind that Fund positioning is just a fraction of what it was, so an overcrowded trade is no longer a concern.
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