Written by Robert Ruppert on December 5, Cattle futures started the week on a bit of a roller coaster with February live cattle and January Feeders establishing their days trading range within the first hour of trade. February live cattle ended the day down. January feeder cattle ended the day -.
Larger show lists this week are suggesting that we could see a softer cash trade. AM boxed beef came in much firmer, but some are suggesting that we could see that drift lower over the next month. Last week we saw a bulk of the trade at live and dressed. There were some late trades Friday. Fridays Commitment of Traders report showed that funds hold a net long position of , contracts; this is a reduction of about 2, contracts from the previous week.
February live cattle traded to a low of We feel like this market could hold here on the first test as the previous two sessions may have been too big of a haircut too fast. If we are able to old on the first test, it is possible that we see the market gravitate towards This pocket was previous support defined by a Fibonacci retracement and the day moving average, this is no resistance. If the market does break and close below first support, we could see additional long liquidation from the funds press us lower.
January feeder cattle started the week out with a pop of volatility, trading down to Technical support comes in from A break and close below will accelerate the selling pressure via long liquidation.
There are some minor support levels below the ones already listed but nothing significant until If the market holds support in the first half of the week, we could see a recovery from the recent selloff. The first pocket comes in from February lean hog futures started the week on softer footing but quickly found buyers as we approached the mid-morning session, finishing up.
February lean hog futures are at a bigger than average premium to the cash market which could keep a lid on any significant rally in futures. Fridays Commitment of Traders report showed that funds hold a good sized long position of 63, contracts; this has some weak hands nervous about the potential for long liquidation.
On the technical side of thing, the chart is sending mixed signals. First technical resistance comes in at On the flip side, we see significant support at For more information please contact DAW Trading at brokersedge dawtradingdiv. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.
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