Cattle Futures Prices Come Under Pressure
Posted: July 6, 2023, 9:05 a.m.
Live Cattle |
Technicals (August - Q)August live cattle lost ground yesterday, retracing majority of the gains we saw last Friday. 174.17-174.40 continues to be the pocket we are watching closely. A break and close below here could spark additional long liquidation. Friday's Commitment of Traders report showed Managed Money (Funds) are still long roughly 107,000 futures and options contracts. Broken down, that is 119,000 longs VS about 11,500 shorts. Historically, this would be looked at as an aggressive position, which means the risk of long liquidation remains, despite the bullish fundamental backdrop. Resistance: 175.95-176.25***, 178.15** Pivot: 174.17-174.40 Support: 170.95-171.50*** 167.25-167.75**** |
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Feeder Cattle |
Technicals (August-Q)Feeder cattle made new highs yesterday but reversed to finish the day sharply lower, trading back to previous resistance 244.47-245.175. This will act as a bit of a pivot pocket in today's trade. A break and close below could spark additional selling pressure with the next support pocket coming in from 240.90-241.90. The most recent Commitment of Traders report showed Funds long 15,391 futures/options contracts. This is off the recent highs but still a historically large net long position. Keep in mind that feeder cattle futures aren't as actively traded, which keeps Funds position sizes smaller than that of contracts like live cattle. Resistance: 248.075-248.85*** Pivot: 244.47-245.175 Support: 240.90-241.90***, 236.40-236.60*** |
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Lean HogsTechnicals (July - N) July lean hogs continued their impressive rally in yesterday's trade, finishing the session 3.45 higher. Yesterday's surge took prices back to levels not seen since March 15th, which coincides with the beginning of the breakdown. We've been optimistic on hogs, but the recovery to the 200-day moving average and original breakdown point was faster than we would have expected. Friday's Commitment of Tradres report showed Funds net long 9,465 futures/options contracts. Resistance: 103.875-104.00***, 105.025-105.35**** Support: 98.35-98.80****, 96.67-96.90*** |
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