Live Cattle (Cash Index): The Index posted a new all-time high of 192.0 during December before closing at that mark, up $2.80 for the month. Theoretical Positions: Hedgers have likely been rolling put options up during the major uptrend and sold cash as needed. Cash cattle could continue to be sold. Otherwise, sell stops would be below the previous 4-month low of $179.00 from September 2024.
Feeder Cattle (Cash Index): The Index posted a new all-time high of 263.07 during December before closing at $261.05, up $5.85 for the month. This was also a new record high monthly close for the Index. Theoretical Positions: Hedgers have likely continued to roll put options up and sell cash. Otherwise, sell stops would be below the previous 4-month low of $239.53 from September 2024.
Lean Hogs (Cash Index): I’m still not seeing anything concrete with the lean hog cash index other than an extended series of lower highs and lower lows. By definition this is a downtrend. For the record, the Index posted a new 4-month low of $83.325 before closing December at $84.85, up $0.493 for the month. Technically, this completed a bullish spike reversal. Theoretical Positions: Cash hogs could continued to be sold.
