The feeder cattle market completed a bearish 2-month reversal during April with the nearby May contract closing at $133.60, near the monthly low of $132.20. As we head into May initial support is at the previous 4-month low of $132.00 (January 2021) while initial resistance is the 4-month high of $148.175 (March 2021). I haven’t put together all the spread charts for feeder cattle (a work in progress), but the May-August closed the month of April at a bearish (-$13.15). This would suggest potential follow-through selling early in the month, possibly enough to take out initial support.
The August issue has more open interest heading into next week, with the contract still in a secondary (intermediate-term) downtrend. This would also suggest continues selling early this coming week.