Live Cattle (Nearby futures): The June issue extended the markets major (long-term) uptrend to a high $256.625 during May before closing at $239.05, down $14.95 (5.9%) for the month. This completed a bearish key reversal confirming a move to a major (long-term) downtrend. Theoretical Positions: Investors long the market (futures, ETFs, etc.) based on continued bullish real fundamentals could liquidate positions and go short near the May settlement of $239.00. Stops would be above the June high of $256.625. The August futures contract closed at $239.05.
Feeder Cattle (Nearby futures): It could still be argued the futures market is in a major downtrend based on the bearish key reversal from October 2025 on the continuous monthly chart (nearby futures contact). Theoretical Positions: Long-term investors might’ve sold the market near the October settlement of $331.90. Others may have waited for the recovery bounce, what would be considered a Wave B (second wave) within the 3-wave downtrend pattern (Elliott Wave Theory). If so, shorts would be established near the May 2026 settlement of $348.425.
Lean Hogs (Nearby futures): The futures market remains in a major sideways trend. Theoretical Positions: Long-term investors are likely on the sidelines at this time.
