Cattle Prices Continue to Decline while the Lean Hog Rally Marches Onward

Posted: June 21, 2023, 8:28 a.m.

Live Cattle

Technicals (August - Q)

  • August live cattle were under pressure yesterday, trading to their lowest price since the first of the month.  If the Bulls fail to find their footing, a retest of the June 1st breakout point would not be out of the question, 167.25-167.75.

Resistance:  175.95-176.25***, 178.10*

Pivot:  170.95-171.30

Support: 167.25-167.75***

LEQ2023_2023-06-21_08-08-37
     

Feeder Cattle

Technicals (August-Q)

  • August feeder cattle futures continued to pullback yesterday, testing and defending the 50-day moving average.  With grains sharply higher yet again this morning, it may keep a headwind in the market.  A break and close below the 50-day moving average could encourage additional long liquidation from the Funds who hold their largest net long position in about a decade.  

Resistance: 240.90-241.90***

Pivot: 236.40-236.60

Support: 231.40-232.30***, 226.50**, 220-221****

GFQ2023_2023-06-21_08-08-58
     

Lean Hogs

  • Technicals (July - N)

    • July lean hogs continued their rally yesterday, trading to multi-month highs, which seems crazy because it seems like not all that long ago that prices were heading to zero.  If the Bulls can keep the momentum going, the next and potentially final near-term objective would be 99.15-100.35.  This pocket represents the 200-day moving average and the original breakdown point from March.

    Resistance: 96.67-96.90***, 99.15-100.35****

    Pivot:  94.15-95.00

    Support: 89.70-90.00***, 87.50-88.50*** 

HEN2023_2023-06-21_08-11-02

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