A Death Cross in Live Cattle?
Mondays Slaughter is estimated at 125,000. 1,000 more than last week and 6,000 more than the same week last year.
Monday's Cutout Values
Choice: 268.68, Up 3.70 from the previous day.
Select: 245.24, Up .22 from the previous day.
Choice/Select Spread: 23.44
5 Area Average Cattle Price
Live Steer: 144.55
Live Heifer: 141.88
Dressed Steer: 235.22
Dressed Heifer: 237.17
Live Cattle
Techncials (August): August live cattle futures broke lower yesterday, taking out the low end of support by .10 but then rebounding into the close. The rebound is encouraging for the Bull camp, but they must defend yesterday’s low on a closing basis to prevent a further decline to 129.975-130.725. On the resistance side of things, our pocket from 134.85-135.25 is the first hurdle for the Bulls to get out above. This pocket represents the 50 and 200 day moving average. Unfortunately, that 50-day moving average is crossing below the 200-day moving average. In technical analysis world, this would be considered a “death cross”. I’m sure you guessed by its label that is is perceived to be bearish. We don’t put much weight into it, but it should be a caution flag for the Bulls.
Resistance: 134.85-135.25 ***, 135.975-136.60**, 138.75**, 140.275**
Support: 132.45-132.775**, 129.975-130.725****
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