December live cattle spent majority of the day playing defense but managed to rally back near unchanged into the close, something we’ve seen many, many times over the last few months. Cash trade has yet to pick up this week, the bulk of last week’s trade came in near 116. Tomorrow’s Fed Cattle Exchange has 1,393 head offered. If cash stalls out or fades that will likely halt the rally on the board, but it has been as resilient over the last two months. The path of least resistance has been and is higher, but this market needs to see relief or at the very least more consolidation. If we don’t see a healthy correction, it could lead to more pain down the road. A market that goes straight up, usually comes straight back down faster, the old reference is: escalator up, elevator down. Support remains intact from....Sign up for your FREE two-week trial!
Feeder Cattle (January)
January feeder cattle was able to defend yesterday’s lows and managed to rally into the afternoon, marking new highs on the move. The market remains in overbought territory, but the path of least resistance is higher. Technical support comes in from 144.50-145.00, this pocket represents trendline support from the contract’s lows at 126; just two months ago! A break and close below here could lead to a further decline and near-term consolidation. On the resistance side, our pocket remains intact from....Sign up for your FREE two-week trial!
Lean Hogs (December)
December lean hogs closed at the low end of the range yesterday, threatening to break lower and fill the gap from September 11th, near 61.50. The market shrugged off the weak technical close and gaped higher this morning, taking prices nearly limit up at one point. The December chart is pretty blah and time is running out. We have mentioned we will be moving our focus to February futures, a chart that appears to be significantly more constructive than December. If February continues to rally tomorrow, we could see a run back towards....Sign up for your FREE two-week trial!
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