Live Cattle

Technicals (June-M)

June live cattle futures were under pressure in today's trade, giving back majority of the relief rally that we saw in the first two sessions of the day. Some of the weakness in today's trade may have come on the back of a risk off environment in the outside markets following hotter than expected inflation data. Yesterday's data was on CPI (Consumer Price Index), today we get a look at PPI (Producer Price Index) at 7:30am CT. We see pretty decent support near 169.00-170.00. If the Bulls can defend this support level in the coming weeks, we would likely look at it as a good risk/reward setup to the buyside. Seasonally, the June contract has headwinds to battle against for another two weeks (ish).

Resistance: 175.70-176.40, 177.72-178.45

Pivot: 172.90-173.425

Support: 169.00-170.00***

Seasonal Tendencies (June Live Cattle)

Below is a look at historical seasonality's (updated each Monday) VS today's prices (black line). Seasonally we start to see June futures soften up, but if you've been watching cattle at all over the last year you know that seasonals tendencies tend to have had a lower correlation this year.

*Past performance is not necessarily indicative of futures results.

Commitment of Traders Snapshot

(updated on Mondays)
Friday's Commitment of Traders report showed Funds were net sellers of roughly 6k contracts. This drops their net long position to 53,281.

Read the full report here: https://bluelinefutures.com/2024/04/11/livestock-futures-slide-lower/

Connect with Oliver Sloup: https://bluelinefutures.com/2023-signup/?utm_source=Oliver-Sloup-Barchart

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