The October Live Cattle contract broke down below the 200 DMA (114.65) on Tuesday July 25, 2017, making its way down to test support at the July 6th low (112.425) with the session low at 112.65. A break down below the July 6 low could see price test support at 110.925. Resistance is at the 200 DMA. On Tuesday negotiated cash trade was mostly inactive on light demand in all feeding regions. Tuesday afternoon boxed beef cutout values were steady on Choice and higher on Select on light to moderate demand and offerings. Choice was up .16 at 207.62 with Select up 1.04 to close at 198.93 on 113 loads. The hide and offal value from typical fed cattle for today was estimated at 11.45 per cwt live, down 0.04 from Monday’s value. The estimated cattle slaughter for Tuesday was reported at 118,000. The fedcattleexchange online auction is on Wednesday morning at 10 AM CT. There are 2,119 head for sale.
The August Feeder Cattle contract continued to sell off on Tuesday, breaking down and testing support at the 147.05 – 146.025 area, with the session low at 146.30. A breakdown below here could lead to a test of support at the 100 DMA at 143.95. A rebound from Tuesday’s low could see a test of resistance up at 148.45.
The October Lean Hogs is below resistance at 67.80. It formed a spinning top candle after a bullish hammer candle. A breakout above the Wednesday high (67.225) could lead to a rally above resistance (67.80) and a test of resistance at 68.35. A break down from the low (66.625) could lead to a test of support at 65.80 and then 64.90.