Cattle Futures Follow Stock Market Lower, Lean Hogs Rally

Cattle Summary

Daily Cutout Values

Choice: 263.04, Up .28 from the previous day.

Select: 242.75, Up 3.99 from the previous day.

Choice/Select Spread: 20.29

5 Area Average Cattle Price

Live Steer: 144.79

Live Heifer: 143.92

Dressed Steer: 232.88

Dressed Heifer: 232.52

Daily Slaughter

Estimated at 122,000. 3,000 less than last week, but 5,000 more than the same week last year.

Feeder Cattle Index

8/26/2022: 183.16

8/25/2022: 182.25

Technical Snapshot

Live Cattle

Live cattle futures continued to slide lower to start the week, which keeps the three major moving averages in focus for today's session. The 50, 100, and 200 day moving average all come in from 141.80-142.15. We would look at this as a potential buying opportunity on the first test, so long as the outside markets don't continue to fall apart. This morning, outside markets are firm, with major stock indices up just under 1%.

Resistance: 145.10-145.975***, 147.35-147.50**

Pivot: 143.25-143.775

Support: 141.75-142.10****, 138.025-138.35****

Feeder Cattle

Feeder cattle futures were able to defend the 50-day moving average last Thursday and Friday, but yesterday broke down below. In yesterday's report we noted that "A failure to defend the 50 day and last week's lows could drop us back into technical support from 180.80-181.35. Below that is the 100-day moving average at 179.75. ". Yesterday's strength in the corn market likely played a role in feeder cattle weakness. Corn is over 10 cents lower in the early morning trade, if it remains weak it could help offer support to feeders, which coincidently would line up with technical support.

Resistance: 185.70-185.90***, 188.125**

Pivot: 182.825-183.00

Support: 180.80-181.35***, 179.75**

Hogs Summary

Daily Direct Hogs Plant Delivered (as of 1:30 PM CT)

Carcass Base Price

Range: 100.00-131.00

Weighted Average: 109.35

Change from Prior Day: -.90

Head Count:6,149

CME Lean Hog Index

8/25/2022: 113.32

8/24/2022: 116.05

Daily Hog Slaughter

480,000. Down 2,000 from last week and 10,000 from last year.

Technical Snapshot

Lean Hogs

October lean hogs were able to stage a rally yesterday, trading back near the August 24th breakdown point, which we've labeled as the pivot pocket, 92.50-92.75. IF the Bulls can chew through this pocket, we could see an extension of the relief rally towards 94.25-95.00. As noted in recent reports, we like looking at the long side of hogs over the last week as the market tested the low end of the recent ranges along with other technical indicators and a seasonally bullish trend for June lean hogs.

Resistance: 98.05-98.25***,100.375-100.825***, 101.65**

Pivot: 92.50-92.75

Support: 89.40-90.225***, 86.825-87.40****

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.