Live Cattle (December)

December live cattle futures were choppy in the last trading day of the quarter, doing little to impact the technical landscape. 184.225-184.55 is the pivot pocket to keep an eye on through the remainder of the week. A failure to defend this pocket on a closing basis could spark a light round of profit taking from recent buyers, not to be confused with a selloff like we saw at the start of August.

• Resistance: 187.675-188.00***
• Pivot: 184.225-184.55
• Support: 181.325-182.07, 179.10-179.97

Seasonal Tendency Update
Live cattle futures were able to buck the seasonal trend of weaker prices in the back half of September, will that strength continue into a seasonally strong time of year? TBD. Economic data and an election could add some turbulence to the market in the coming months.

*Past performance is not necessarily indicative of future results

Feeder Cattle (October)
Feeder cattle were under some minor pressure yesterday, some of which came on the back of a friendly corn report. Despite yesterday’s weakness, our pivot pocket held and remains intact, we’ve outlined that as 245.90-246.50. A break and close back below this pocket and a retracement to 239.62-240.25 would not be out of the question. On the resistance side, 249.85-250.80 is the significant resistance barrier, still a ways above the market.

• Resistance: 249.85-250.80*
• Pivot: 245.90-246.50
• Support: 242.75-243.45, 239.62-240.15***

Seasonal Tendency Update
Seasonally the first week and a half of October can be friendly for feeder cattle, but we’ve seen a counter seasonal rally take place for the last few weeks which my throw everything off kilter. Seasonal tendencies can be a great tool, but we feel shouldn’t be used as a standalone trade trigger.
*Past performance is not necessarily indicative of future results

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