Cattle and Hogs Start the Week LowerPosted 06/05/2018 9:09AM CT |
August live cattle traded lower yesterday, down 2.3 cents from last Thursday’s fail high of 105.200. August feeder cattle also started the week negative, closing down 0.775 to 145.225. After choppy trade the cattle couldn’t hold the highs of the day and continued the short-term trend lower after failing to break resistance last week. The agricultural sector as a whole saw lower trade to start the week, lead by trade friction between the US and several other countries. A weaker dollar and stronger stock market failed to provide much if any support. The cash market trading at a premium to the futures coupled with increased margins for packers provides some support.
August live cattle are trending higher despite three consecutive down days. Resistance is above at 105.275 and a close above that level is needed to continue trade higher. Momentum studies are reaching overbought levels and could push trade lower on a close below where the 21-day moving average and trendline meet at 102.560. If the trend reverses lower look for support to come in at 101.000.
Live Cattle Aug ’18 Daily Chart