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Check out our Vice President Oliver Sloup on RFD-TV touch on Grain markets have traded on both sides of unchanged as traders gear up for what is historically a more volatile time of year.

Live Cattle

Technicals (June-M)

June live cattle futures started the week with an impressive rally back to the top end of the recent trading range. All in all, not much has changed technically as the market remains mostly rangebound. Resistance to keep an eye on comes in from 185.85-186.625. If the Bulls can chew through and close above this pocket, it could spark another leg higher. A few things we are watching (besides Friday's Cattle on Feed report estimates) is the outside markets into and after the Federal Reserve meeting tomorrow. Nothing is expected to change in terms of interest rates, but it will be more about the guidance going forward. If rate cuts continue to get walked back and pushed further out, you could see volatility in the outside markets trickle into commodities.

Yesterday's cutout values were firm with choice cuts 1.43 higher to 313.33 and select cuts 65 cents higher to 303.05. The 5-area average price for live steers came in at 187.47, firm with what we saw last week at this time. Daily slaughter was reported at 120,000 head, 4.6k less than the same day last year.

Resistance: 185.85-186.625*, 189.05

Pivot: 182.20

Support: 179.825-180.625**, 177.10

Seasonal Tendencies (June Live Cattle)

Below is a look at historical seasonality's (updated each Monday) VS today's prices (black line). Seasonally we start to see June futures soften up, but if you've been watching cattle at all over the last year you know that seasonals tendencies tend to have had a lower correlation this year.

*Past performance is not necessarily indicative of futures results.

Commitment of Traders Snapshot

(updated on Mondays)
Friday's Commitment of Traders report showed Funds were net buyers of about 4k futures and options contracts, extending their net long position for the eighth consecutive week, now sitting roughly 63.3k contracts long. Typically, we would view this as a relatively Neutral/Bullish position. This is about half of the length they had when prices peaked last Fall.

Check out the full article for more insights at Blue Line Futures.

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