Live Cattle (Cash Index): The cash market remains in a major (long-term) up as it held near the high of $155 during December. Based on monthly stochastics the live cattle cash index remains sharply overbought. Theoretical Positions: Traders would likely be long the market with a stop below the previous 4-month low of $141.00.
Feed Cattle (Cash Index): The case could still be made cash feeders are in a major downtrend based on the bearish 2-month reversal completed between August and September 2022. December saw the index climb to a high of $181.93, holding below the August high of $183.04. Support is at the interim low of $172.03 from October. Theoretical Positions: Short near the September close of $175.46. Additional shorts could be added with a break of the previous 4-month low at $172.03. Stops are above the August high of $183.04.
Lean Hogs (Cash Index): I am not getting a good read on trend from the monthly chart for the lean hog cash index. That being said, the most recent technical pattern was a bearish key reversal during August followed by a gap down to start September. Theoretical Positions: It’s possible some might’ve sold as August came to a close given the bearish key reversal pattern being completed.