Meats

April live cattle traded on both sides of unchanged before finishing yesterday’s session in positive territory. The market ran up against our technical resistance pocket but failed to chew through it,
April lean hogs retreated yesterday but fell short of falling apart. The volatility (up and down) creates an emotional and irrational trading environment, so consider reducing your “normal” position sizing.
Lean hogs found some relief on Thursday and Friday, but there is still significant damage to repair on the chart. The volatility (up and down) creates an emotional and irrational trading environment, so consider reducing your “normal” position sizing.
April live cattle failed to find their footing, cutting against our thesis that the outside markets stabilizing would offer more support to the market.
Lean hogs were mixed to start the day with headlines suggesting China was seeking leniency on the Phase-1 agreement due to the coronavirus outbreak, halting an attempt at a meaningful relief rally in the front months.
Livestock futures were under pressure yet again in yesterday’s session as the risk-off mentality came back into play. After the livestock markets closed, the outside markets stabilized with stocks rallying as much as 2% off the lows.
April live cattle opened up steady(er than we thought). They eventually gave up ground into the afternoon session with the market making new lows for the move.
April live cattle got taken to the woodshed for the second time in three sessions as fears of coronavirus trigger additional long liquidation from the funds. We have been leaning on the short side and are still pressing that angle.
February live cattle traded in another tight range, treading water on the 50-day moving average at 125.85, close to the middle of the recent range. The market is starting to look and feel a little heavier.
February live cattle traded in its tightest range in some time, leaving us little changed (again) on the technical landscape. Resistance remains intact from 127.225-127.90, above there is uncharted territory.