Live Cattle Futures Steady Amid Technical Chart Resistance

Strategic Insights -

Tuesday's session for Chicago Mercantile Exchange live cattle futures was expected to be steady compared to Monday's late action, with traders focused on technical charts testing resistance levels. April live cattle futures had hit a three-week high, but was facing a barrier at 89.00 cents-per-pound. Positions were moving out of February and into deferred months, with April open interest increasing to near record levels.

Key Takeaways:

  • Live cattle futures were expected to start Tuesday's session steady compared to Monday's late action.
  • Traders were focused on technical charts, which had been testing resistance levels.
  • April live cattle futures had hit a three-week high but was facing a barrier at 89.00 cents-per-pound.
  • Positions continued to move out of February and into deferred months.
  • April open interest was increasing to near record levels.
  • The choice/select spread for Monday was $4.16.
  • The operating margin index for cattle packers Monday was a negative $46.00 per head.
  • The U.S. Department of Agriculture reported higher beef prices Monday.
  • The composite value for choice product was up $2.51 at $144.85 while select was up $2.01 at $140.69.
  • The volume of sales was 152 fabricated loads.
  • The USDA estimated slaughter Monday at 116,000 head, compared with 117,000 last week and 109,000 last year.

Statistics:

  • The operating margin index for cattle packers Monday was a negative $46.00 per head.
  • The composite value for choice product was up $2.51 at $144.85.
  • The composite value for select product was up $2.01 at $140.69.
  • The volume of sales was 152 fabricated loads.
  • The USDA estimated slaughter Monday at 116,000 head.
  • The CME feeder index was up 38 points to 103.80.

Sources:

  • ODJ via COMTEX
  • Dow Jones
  • Jim Cote, Dow Jones Newswires, 312-715-6284, jim.cote@dowjones.com
  • COMTEX (http://www.comtexnews.com)