DTN Midday Livestock Comments
Pressure Continues to Build
Live Cattle:
Dec live cattle are falling apart Friday, with heavy selling coming from both commercial and noncommercial traders. The contract is set to establish bearish technical signals on its weekly charts, all while the increasingly bearish December-to-March futures spread reflects commercial selling. The market could trim its loss by the close, though a move to limit-down can't be discounted completely.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
Feeder Cattle:
Following the lead of live cattle, feeders have seen an early feeble attempt at rallying washed away. Spreads beyond the Nov contract are growing more bearish, reflecting increased commercial selling interest. Similar to Dec live, Jan feeders are in position to establish bearish technical signals on weekly charts.
Lean Hogs:
Not to be outdone by cattle, lean hogs are also showing signs of pressure Friday. Commercial selling is indicated by action in the December-to-March spread, though noncommercial selling isn't as heavy as what's being seen in cattle. From a technical point of view, hogs do look to be in the same bearish boat with the end of the week fast approaching.
Darin Newsom can be reached at darin.newsom@dtn.com
(BE)
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.