Livestock Markets Hit a Brick Wall

Live Cattle

Technicals (October- V)

October live cattle once again tested but failed to get out above our resistance pocket which comes in from 181.52-182.17.  Part of the failure and eventual weakness may have come on the back of a broad-based risk-off trade environment as the US Dollar and interest rates were catching a bid, creating a "sell everything" type of morning as concerns grow about a new wave of inflation.  If the Bulls fail to find their footing in tomorrow's trade, a retest of the low end of the range seems probable, that comes in from 178.62-179.10.

Resistance: 181.52-182.17***, 184.35**, 185.75***

Pivot:  178.62-179.10

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

Feeder Cattle

Technicals (October - V)

Feeder cattle futures could not avoid the broad-based risk-off trade, despite corn futures being sharply lower.  With yesterday's sharply higher trade, it would have been interesting to see if feeders could have broken out today had it not been for the "sell-everything" environment.  A continued failure against resistance could take prices back to retest the low end of the range.  

Resistance: 254.20**, 256.00**

Pivot:  252.60-253.00

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

Lean Hogs

Technicals (October - V)

Our 4-star resistance pocket proved to be too much for October lean hogs to overcome.  Some of that may have come on the back of broad-based weakness as bonds dropped (rates rose) and the US Dollar surged higher, creating weakness in the outside markets as concerns grow about a resurgence in inflation.  

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

Pivot: 83.55

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