Livestock Roundup 10/19/22
Posted: Oct. 19, 2022, 8:50 a.m.
Cattle Summary
Daily Cutout Values
Choice: 250.78, Up 2.64 from the previous day.
Select: 221.28, Up 1.67 from the previous day.
Choice/Select Spread: 29.50
5 Area Average Cattle Price
Live Steer: 147.00
Live Heifer: N/A
Dressed Steer: N/A
Dressed Heifer: N/A
Daily Slaughter
Estimated at 128,000. Unchanged from last week but 7,000 more than the same week last year.
Feeder Cattle Index
10/17/2022: 172.27
10/14/2022: 173.08
Technical Snapshot
Live Cattle
December live cattle futures found some follow-through momentum yesterday, taking prices out above the 50-day moving average and closer to the "scene of the crime" and our first technical resistance pocket; aka the breakdown point from September 22nd. If the market can find additional momentum through today's session, the next line in the sand and more significant resistance pocket to keep an eye on comes in from 151.60-151.775.
Seasonal Trend in Play: April live cattle have been higher from October 5th-November 11th for 13 of the last 15 years.
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Feeder Cattle
November feeder cattle were able to rally back to the top end of the recent range, which we have labeled as 3-star resistance in previous reports. That pocket comes in from 177.90-178.35. If the Bulls can chew through this pocket, there's not a lot of significant resistance until you get closer to 182. With the corn market softening up and funds holding a relatively large net short position, that 182 mark is not out of the question.
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Hogs Summary
Daily Direct Hogs Plant Delivered (as of 1:30 PM CT)
Carcass Base Price
Range: 81.00-99.00
Weighted Average: 93.85
Change from Prior Day: 7.61
Head Count: 17,120
Daily Hog Slaughter
490,000. Up 1,000 from last week and 10,000 from last year.
Technical Snapshot
Lean Hogs
December lean hog futures continued to move north yesterday, taking out 3-star resistance and beelining it to our next line in the sand, 86.775. We mentioned in yesterday's report that we like the idea of selling into the overbought strength, against technical resistance, during a seasonally bearish time of year. A breakout and close above yesterday's high would neutralize that short-term bias.
Seasonal Trend in Play: December lean hogs have been lower from October 15th-November 6th for 12 of the last 15 years.
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