A Death Cross in Cattle? What the heck is that!?

Monday’s Slaughter is estimated at 125,000. 1,000 more than last week and 6,000 more than the same week last year.

Monday’s Cutout Values

Choice: 268.68, Up 3.70 from the previous day.

Select: 245.24, Up .22 from the previous day.

Choice/Select Spread: 23.44

5 Area Average Cattle Price

Live Steer: 144.55

Live Heifer: 141.88

Dressed Steer: 235.22

Dressed Heifer: 237.17

Live Cattle

Techncials (August): August live cattle futures broke lower yesterday, taking out the low end of support by .10 but then rebounding into the close. The rebound is encouraging for the Bull camp, but they must defend yesterday’s low on a closing basis to prevent a further decline to 129.975-130.725. On the resistance side of things, our pocket from 134.85-135.25 is the first hurdle for the Bulls to get out above. This pocket represents the 50 and 200 day moving average. Unfortunately, that 50-day moving average is crossing below the 200-day moving average. In technical analysis world, this would be considered a “death cross”. I’m sure you guessed by its label that is is perceived to be bearish. We don’t put much weight into it, but it should be.....Sign up for your FREE two-week trial of our daily commodity commentary

Resistance:

Support:

Below is a daily chart of August live cattle futures

Feeder Cattle

Technicals (August): August feeder cattle were technically sound yesterday, trading nearly perfectly against our technical support and resistance pockets, only to finish the session near our pivot pocket. Those technical pockets remain in play today as the market continues to coil, marking higher lows and lower highs. This type of consolidation typically leads to a bigger directional move. Trendline resistance, the 100 and 200 day moving average are the big barrier on the resistance side of things, that pocket comes in from 175.50-176.125. On the support side.....Sign up for your FREE two-week trial of our daily commodity commentary!

Resistance:

Pivot:

Support:

Lean Hogs

Technicals (August): August lean hogs have been trapped between the 200-day moving average and 50 day moving average for a while now, but as those converge it could setup for a bigger directional move (instead of the choppy sideways trade that we’ve been stuck in for a month). First resistance comes in from 108.65-109.45. This pocket represents trendline resistance and the 50-day moving average. On the support side of things.....Sign up for your FREE two-week trial of our daily commodity commentary!

Resistance:

Pivot:

Support:

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