The live cattle market followed-through on its key bearish reversal from April with the nearby futures contract falling to a low of $112.575 during May. The monthly close by June at $115.875 was down $0.70 for the month, with the initial downside target near $108.10. This price marks the 38.2% retacement level of the previous major uptrend from $81.45 (April 2020) through the April 2021 high of $124.575. Fundamentally the market remains bearish, as indicted by the June-August, August-October, and October-December futures spread while the December-February is neutral-to-bearish an looking like it could break down.
initial support is at the previous 4-month low, the May 2021 low, of $112.575.
