Live Cattle (Cash Index): The cash index consolidated within the June range before posting a new all-time high monthly close of $232.00 at the end of July. Is the market top heavy? Yes. Is it overbought? Also yes. Is it going to fall? Again, yes. But there is no indication of when that might be. Theoretical Positions: Hedgers have likely been selling cash cattle when ready. We need to keep an eye on the index given it has left a series of upside gaps on its monthly chart.
Feeder Cattle (Cash Index): The cash index extended its major uptrend to a high of $335.01 in late July before closing at that mark, up $19.94 (6.3%) for the month. Theoretical Positions: Cash feeder can continue to be sold as planned.
Lean Hogs (Cash Index): The cash market consolidated during July but remains in a major uptrend. The index closed the month at $110.514, down $1.248 from the June settlement. Theoretical Positions: Cash hogs could continued to be sold when ready.
This continues to be one of the easiest sectors. Someday, that will change.
