TheBeefSite.com - news, features, articles and disease information for the beef industry

News

Jim Wyckoff: Fundamentals and Consumer Demand Continue to Support Cattle Futures

09 October 2013
Jim Wyckoff Commentary -  TheCropSite

US - December live cattle closed down $0.37 at $131.95 Wednesday. Prices closed nearer the session high and saw mild profit taking from recent gains.

The key "outside markets" were in a fully bearish posture for the cattle market Wednesday, as the U.S. dollar index was sharply higher and crude oil prices were sharply lower.

Good consumer demand and bullish cash market fundamentals continue to support the cattle futures market. The U.S. government partial closure means a serious lack of livestock market information, which is casting a pall over the livestock futures markets. The uncertainty of this matter favors the bears.

The cattle futures bulls have the solid near-term technical advantage. Prices are in a nearly five-month-old uptrend on the daily bar chart. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at $134.00.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $130.85. First resistance is seen at last week's high of $132.60 and then at $133.00. First support is seen at today's low of $131.70 and then at last week's low of $131.440. Wyckoff's Market Rating: 7.5

November feeder cattle closed up $0.05 at $166.37 Wednesday. Prices closed near the session high and closed at another fresh contract high close today.

The feeder bulls have the solid overall near-term technical advantage. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at $167.50.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at $163.00.

First resistance is seen at last week's contract high of $166.50 and then at $167.00. First support is seen at today's low of $165.75 and then at this week's low of $165.35. Wyckoff's Market Rating: 8.0

TheCattleSite News Desk

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.



Our Sponsors

Partners


Seasonal Picks

Animal Welfare in EPS - 5m Books