RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Your guess may be as good as mine as far as where the top will be in live and feeder cattle futures. My guess is that the front month hits 145 in feeder cattle, and 133 in live cattle futures. Downside support for live cattle is just above 116 and 135 in the feeder cattle futures. I can see the feeder cattle futures form a blow off top around 152 if momentum holds.

Technically, RJO Market Insight identifies 111.95 and 108.675 in June live cattle futures as key S-T Risk and Risk points respectively to maintain a bullish stance.

COF is on Friday and the fundamentals continue to look strong from all ends of the production chain. I believe demand has and will continue to remain strong, and that producers have learned from the recent past to push product and take what the market is going to give you to prevent backlogs. Hedgers should do the same.

 

Cattle Monthly Chart

Jeff Gilfillan