Live Cattle Futures Commentary
Live Cattle (October)
It was a bit of a snooze fest in live cattle today, trading both sides of unchanged, only to finish the day near unchanged. Today’s Fed Cattle Exchange sold 133 head at 111 in KS, not exactly anything to write home about. On the technical side of things, the market looks confused, possibly still hungover from the dramatic fall from April to June. The bulls tried to get out above technical resistance but failed at the first hurdle, we defined that as 107.20 in yesterday’s report. The bull camp needs to see things stabilize and firm before the weekend.
Resistance: 107.20-108.35***, 110.60-110.85***
Support: 104.85-105.05***, 103.175-103.425****
Feeder Cattle Futures Commentary
Feeder Cattle (October)
October Feeder cattle are little changed on the week, despite trading both sides of unchanged in the previous three sessions. 3-star resistance held yet again, we have had that defined as 139.35-140.425. On the support side of things, 136.625-137.225 is the pocket we are watching in the back half of the week. The bears have a bit of an advantage, but it could really go either way here.
Resistance: 139.35-140.425***, 143.95-144.425****
Support: 136.625-137.225***, 134.575-134.85**, 131.95****
PM Boxed Beef / Choice / Select
Current Cutout Values: / 216.49 / 192.71
Change from prior day: / .71 / .06
Choice/Select spread: / 23.78
Lean Hogs Commentary
Lean Hogs (October)
October lean hogs managed to put a tourniquet on today, finishing at session highs, a stone throw from limit up. The consolidation from Monday’s session is all you can ask for if you’re in the bull camp. This could lead to a bottoming process, but we will need to see further evidence before getting too excited. The first step, achieving consecutive closes above technical resistance, 69.90-70.825. If you happen to have long exposure on from profitable levels earlier in the week, consider rolling stops up.
Resistance: 66.80-67.675**, 69.90-70.825***, 74.65-75.025****
Support: 64.175-64.475**, 61.50***, 58.20-59.50****