Are cattle futures setting up for a breakout?

Cattle & Beef - iStock-1141422847

Live Cattle

Technicals (June-M)

June live cattle were able to continue higher in yesterday’s trade, achieving the highest daily close since March. The chart looks like it could make a leg higher if we can see consecutive closes above resistance. Potentially that would be enough of a catalyst to encourage some momentum traders into the market. The cash market remains steady which is also a silver lining for the Bulls.

This morning’s weekly export sales report came in at 15,100 MT for 2024 were up 23 percent from the previous week, but down 11 percent from the prior 4-week average.

Resistance: 178.45-178.80*, 179.65-180.75

Pivot: 175.80-176.20

Support: 172.90-173.425* 169.00-170.00*

LEM2024_2024-05-16_07-26-26

Feeder Cattle

Technicals (August – Q)
August feeder cattle futures finished the day higher but were not able to take out the previous day’s high and traded in a relatively narrow range. We are approaching a time of year where we tend to see the market firm, whether or not that rings true this year is TBD. A break and close above trendline resistance could spark that move. Until then, consolidation seems like the likely scenario.

Resistance: 258.00-258.50, 263.325-264.875*

Pivot: 254.025-255.00

Support: 248.30-250.075**, 243.27

GFQ2024_2024-05-16_07-43-04

Lean Hogs…

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