Live Cattle

Near Term (Basis June):  Bullish

The count remains a factor in the June futures with today reaching eleven straight trading days with higher closes. New trading highs for the rally on the daily chart adds to a bullish chart read along with the rising ADX. This combination of features along with the deep discount between the June futures and the about to expire April creates the attraction higher for the roll gap when we see it at the end of next week…where ever that is. We would note that the open interest in total declined Wednesday on a higher trading day and some will try to make this into the start of a topping out process where the “smart money” is starting to bail on the new highs. It is premature to think that is a valid reason to call for a trend change, but we will be interested to see tomorrow morning’s open interest figures just the same. 

Long Term: Bullish

Our long-term technical outlook is bullish. Major resistance is at 135.22 cents, while support is 114.65 and then 113.97 cents. 2017-04-20 16_51_26-042017_SF_Daily_Commentary_Live_Cattle [Read-Only] - Microsoft Word2017-04-20 16_51_21-042017_SF_Daily_Commentary_Live_Cattle [Read-Only] - Microsoft Word

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