Livestock Roundup

Live Cattle (April)

April live cattle made new contract highs yesterday and finished the session at new closing highs. As mentioned in yesterday’s report, prices at contract highs puts us in “uncharted territory” which makes the task of finding the next resistance levels more like a game of “pin the tail on the donkey”. We have seen the momentum trades take hold in a lot of commodities over the last several months and that has shifted into the livestock sector, something we have been very vocal about for the last two months. We think the market needs to catch its breath and welcome a healthy consolidation phase or correction, don’t confuse that with being bearish or trying to fade the momentum trade.........Click this link to read the FULL report and receive our daily commentary