Cattle Prices Hit 3 Month Low

Cattle Prices Hit 3 Month Low
Cattle Prices Hit 3 Month Low

Live Cattle Futures—-Live cattle futures opened sharply lower this Monday afternoon in Chicago down 180 points at 122.50 in the April contract reacting negatively off of the cattle on feed report which was released last Friday sending prices to a 3 month low. I have been recommending a bearish position from around the 124.50 level and if you took that trade continue to place the stop loss at 128.55 as the chart structure is terrible at the current time due to the fact that prices have plunged out of an 11-week tight consolidation.

Cattle prices are now trading under their 20 & 100 day moving average as the large money managed funds are long around 90,000 contracts as they could certainly push this market substantially lower with the next major level of support around the 120 level as that could be touched in this week’s trade.

At the current time this is my only livestock recommendation as the Coronavirus is sending shockwaves throughout many different sectors as there is sheer panic at the current time so stay short and you have to remember the longer the consolidation the stronger the breakout and that’s exactly what we are witnessing at this time.

TREND: LOWER

CHART STRUCTURE: POOR

VOLATILITY: HIGH

 

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