Live Cattle Futures—Cattle futures in the February contract is trading lower for the 5th consecutive session down another 60 points at 112.80 unable to join the party of the other agricultural sectors which continue to move higher in 2021.
Many commodities at the current time are hitting multi year highs, however cattle is stuck in the mud with a couple other markets, but I do believe prices are forming a bottoming out pattern as I will not take a short position.
Cattle prices are trading below their 20 and 100 day moving average as the trend has turned negative, however if you take a look at the daily chart it’s mixed in my opinion as we have been choppy over the last 6 months as I’m advising clients to be patient and wait for the breakout above the 116 level on a closing basis as trading in choppy markets is very difficult and frustrating in my opinion.
The volatility will remain high especially throughout the winter months so make sure that you place the proper amount of contracts when the true breakout does occur as I’m also keeping a close eye on the hog market.
CHART STRUCTURE: IMPROVING
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