What's in store as we start a new month of trade?
Cattle futures were choppy to end the month while lean hogs saw continued strength.
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Live Cattle (August)
August live cattle futures made new highs for the move, trading to the highest level since May 14th (the day we marked the contract high). However, that strength fell flat against our resistance pocket from 211.00-211.725 (posting a high of 211.60) and then dissipated and turned to weakness with prices retreating back near the 20-day moving average. Our overall bias remains mostly the same, sure the fundamental backdrop suggests we could see prices continue to grind higher, but recently the higher velocity risk has been to the downside, with pullbacks being much faster and deeper than the rallies.
Resistance: 211.00-211.725**, 214.50**
Pivot: 208.475-209.00
Support: 205.32-205.40***, 203.275-204.075****, 201.175**
Daily Cattle and Beef Summary
Cutout values were firm on Friday afternoon with choice cuts .25 higher to 366.34 and select cuts 3.01 higher to 356.65. Slaughter on Friday was reported at 117k head. The 5-area average price for live steers was reported at 228.53. The CME Feeder Cattle Index is at 297.75 with the NBW Real Time Index at 300.36.
Seasonal Tendency Update
(updated 6.2.25)
Below is a look at historical price averages for August 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 were net sellers of roughly 1k futures and options contracts, brining the net long down to 131,293. Still lofty on historical standards.
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