Live Cattle Futures—Live cattle futures in the February contract is sharply higher this Friday afternoon in Chicago up 250 points at 127.60 hitting a fresh contract high as prices are reacting strongly because of the phase 1 trade agreement with China as most agricultural markets are higher across the board as that is an extremely bullish fundamental factor for higher prices ahead.
I have been looking at a bearish position over the last several weeks thinking that prices had topped out, however the tide has turned as I think a bottom in the grain market and in the hog market has also occurred so look to play the commodities to the upside as I think 2020 could be a very bullish year.
Cattle prices are trading far above their 20 and 100 day moving average as the trend is to the upside with the next level of resistance all the way at the 130 level as that is why you wait for a breakout to occur before jumping the gun as there’s no reason to be short at this time.
This week has been a terrific week for President Trump as the USMCA, phase 1 China agreement, and the fact that Brexit now is going to occur as there will be a trade deal with the United Kingdom as all of this is very bullish the agricultural markets.
CHART STRUCTURE: SOLID
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