October live cattle future finished today’s session at the low end of today’s range, and the lowest closing price in a week and a half. As stated in yesterday’s report, our outlook continues to be bleak for the October contract with the simple premise that we should have rallied harder after the deep discount two weeks ago. Sure, cash is higher than the board, but that doesn’t mean we have to see the board narrow the gap right away. We believe the board is telling us something else (price precedes news). With all our negativity around the October contract, we do see a bright spot in the April futures and will consider establishing longer term long positions with clients who agree.
Resistance: 101.675**, 103.75-104.85***
Feeder Cattle (October)
Our skepticism on October feeder cattle has continued to come to fruition this week (knock on wood) as last week’s failure against resistance has invited sellers back in at better prices. The other thing to keep an eye on is.......
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