Is The Top For Cattle In?

Posted: July 26, 2023, 7:40 a.m.

Live Cattle

Technicals (October- V)

October live cattle posted their fourth consecutive day of losses, the longest losing streak since the first week of May. The market is threatening significant support near 179.65. If the Bulls fail to defend this level we could see continued long liquidation press prices lower. The next downside target would be 176.20-177.25. As mentioned in yesterday's report: long liquidation risk continues to be one of our biggest concerns that continues to temper our expectations. In our interview with Ag-Day TV this week we were asked what type of event could cause long liquidation. Our answer: there doesn't need to be a black-swan event or even bearish headlines. It could just be a stall out of Bullish headlines.

Resistance: 184.35**, 185.75***

Pivot: 179.65-180.175

Support: 176.20-177.25****, 174.80**

Feeder Cattle

Technicals (October - V)

October feeder cattle were lower yesterday but remain mostly rangebound, keeping many of the technical levels intact. Our first support pocket was tested and held again, that comes in 247.40-247.75. A failure to defend this pocket on a closing basis could trigger additional pressure. Potential downside targets are the 50-day moving average near 244.10 and the June 27th gap at 242.00. With all of that bearish content in mind, grains are weaker which may be supportive to prices on the open.

Resistance: 252.60-253.00***, 254.20**, 256.00**

Support: 247.40-247.75***, 246.025**, 243.75***

Lean Hogs

Technicals (October - V)

October lean hogs were able to reclaim some ground in yesterday's trade, but significant resistance near 86 remains. This area represents the 200-day moving average along with previously important price points which date back to the Spring. We would not be surprised to see the market fail against this resistance. With that said, a breakout above our 4-star resistance pocket could reignite the optimism with the next objective being closer to 90.00.

Resistance: 85.50-86.40****, 87.77-88.32***, 89.12-90.00**

Pivot: 83.55

Support: 80.55-81.50***, 78.45**

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