Livestock Markets Surged Higher Last Week
Cattle and hogs surged higher last week as fundamentals and technicals remain largely constructive. Can the rally continue to take prices deeper into uncharted territory?
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Live Cattle (August)
A strong cash market continues to propel futures prices higher into uncharted territory. The big rally in the bag half of last week’s trade brings the RSI to 72.66. Technically in overbought territory, but we’ve seen that reading get as high as 75 this year and 79 last fall. With the market deep into uncharted territory, meaningful resistance is a lot like playing pin the tail on the donkey. The trend of the cash market will likely be the key driver, obviously that has been up and to the right. If that stalls or starts to soften, that will likely trigger long liquidation in futures (Captain Obvious here).
Resistance: 220**, 225*
Pivot: 214.50
Support: 211.00-211.725**, 208.475-209.00
Daily Cattle and Beef Summary
Cutout values were mixed on Friday afternoon with choice cuts 1.77 lower to 365.08 and select cuts .12 higher to 356.73. Slaughter on Friday was reported at 103k head. The 5-area average price for live steers was reported at 234.16. The CME Feeder Cattle Index is at 306.16 with the NBW Real Time Index at 311.62
Seasonal Tendency Update
(updated 6.9.25)
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 buyers of roughly 500 futures and options contracts, brining the net long down to 131,805.
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