Livestock Roundup

Live Cattle (August) August live cattle futures took a nosedive yesterday, giving us expanded limits today, 4.50. Cutout continues to be under fire, in a normal situation that is bearish, I’m not sure that is the case in this environment. To us, it signals that plants are continuing to ramp back up, which is good for chewing through some of the backed-up inventory. As mentioned in our interview with RFD-TV on Monday, we expect to see cash trades come in from 110-120. Even if the cash market softens up more, the futures are still at a steep discount, so we do continue to see pullbacks as buying opportunities.

Despite the big sell off yesterday, all of our technical levels remain intact. Four-star support remains, that comes in from 95.10-95.45. This pocket represents the Gap from May 7th, a key retracement, and other previously important price points. A breakdown below this pocket would neutralize our bias.....Contact us for the FULL report! Feeder Cattle (August) August feeder cattle retreated back to our pivot pocket 132.75-133.725. The Bulls MUST defend this pocket, a failure to do so opens the door for a retest of the low end of the range, 127.25-128.45. Technical resistance remains intact from 137.70-139.125, we think this will be a tough barrier to break through.....Contact us for the FULL report! Lean Hogs (July) July lean hogs tried to rally yesterday but reversed and are threatening to break below the low end of 4-star technical support. If we do see that pressure continue today, it could accelerate the selling and take us down towards our next pocket, 51.325-51.625.....Contact us for the FULL report!

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Call/Text/Email, Oliver with any questions. and 312-837-3938

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