Monday, November 12, 2018

Monday Morning Livestock Market Summary - Cattle Looking for Support

GENERAL COMMENTS:
Coming off of a week in which cattle and feeder futures prices broke to new lows and cash cattle were steady to $2 lower, prices will be looking for some form of support this week ahead of next week's Thanksgiving holiday. This week's showlist is likely to be a little larger than last week.
In spite of last week's lower cattle prices and falling pork carcass values, December hog futures continue to hold a sideways trend with support near $51. In the February contract, it will be interesting to see if prices can hold support near $59, the October low. 
BULL SIDEBEAR SIDE
1)
Beef production is expected to be lower in November.
1)
Boxed beef prices were lower last week and cash trade a little lower.
2)
Next support level is $111 for December cattle and $114 for February.
2)
New one-month low in December cattle and a new three-month low in January feeders speak for themselves.
3)
Year-to-date pork production is up just 2.7% so far.
3)
Last week's 2.59 million head hog slaughter is keeping retail prices under pressure.
4)
Pork export pace continues to do well, considering trade issues.
4)
Resistance is at $60 in December hogs and has been firm, so far.



#chh

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