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Live Cattle (December)
December live cattle broke lower in Friday’s trade as it appeared nobody wanted to be long over the weekend with the potential for more bearish headlines to drop. It doesn’t appear there were any major developments over the weekend, will that be enough to offer support to the market? TBD. On the technical side, we see support from 173.17-173.87. If the Bulls can defend this pocket on a closing basis it may setup for a good risk/reward trade to the buyside. A failure there and we would be looking at the December lows as the next downside target, 172.25.
Resistance:179.10-179.97, 181.325-182.07
Pivot: 175.92-176.10
Support: 173.17-173.87, 172.25
Commitment of Traders Update
Friday’s Commitment of Traders report showed Funds were relatively flat through September 3rd. Their net long position stands at a relatively neutral 38k futures/options contracts.
Feeder Cattle (October)
October feeder cattle futures posted a new closing low on Friday and are within a stone’s throw of the contract low which was posted on August 21st at 229.35. Below that and prices are back in uncharted territory, which makes it more difficult to find meaningful support levels. 225.00 would be the psychologically significant next number. On the continuous chart there looks to be support near 226.375.
Resistance: 236.20-236.75, 238.80-239.825*
Pivot: 232.75-233.95
Support: 229.35-229.85**, 226.37, 225.00*
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