Live Cattle (April)
April live cattle rolled over yesterday as a string of uncertainty led to long liquidation from the funds. The cash trade has started to pick up and it is coming in on the softer side, couple that with position squaring ahead of today’s Cattle on Feed report and you have the recipe for a technical breakdown. 123.20-123.525 was a significant pocket back in October and November, the 100-day moving average comes in just below here too. A failure here leads to another selling surge and could be enough to start influencing the cash trade.
Today’s Cattle on Feed estimates are as follows: On Feed: 102.2, Placements: 103.4, Marketings: 105.2
Support: 123.20-123.525****, 121.925-122.00**
Feeder Cattle (March)
In yesterday’s report we talked about our support pocket from 142.85-143.125 becoming weaker, saying “This support pocket has been tested and held a handful of times over the last month, each time a level is tested the weaker it becomes. A break below here could opened the door for a whoosh lower. Our next support pocket comes in from 139.25-140.25”. That pocket did give way, and the whoosh lower is what we saw in the last hour of trade, on heavy volume. If we see follow through on the open we could see an extension towards 138.05-138.625.
Resistance: 144.275**, 146.85-147.975****
Support: 139.25-140.25***, 138.05-138.625****
Feel free to contact Oliver with any questions or comments
Call or Text: 312-837-3938
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