Live Cattle (Cash Index): The cash index extended its major (long-term) uptrend to a high of $240 during August before closing at that mark, up $8.00 (3.5%) for the month. However, the Index did leave a price gap underneath its August, opening the door for a potential island top reversal at some point. 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 $365.38 in late July before closing at that mark, up $29.49 (8.8%) for the month. Theoretical Positions: Cash feeder can continue to be sold as planned.
Lean Hogs (Cash Index): The Index closed August at $106.431, down $3.827 for the month. We need to be careful with the market as it could be indicating a major technical top is building. Theoretical Positions: Cash hogs could continued to be sold when ready.
This continues to be one of the easiest sectors. Someday, that will change.
