Live Cattle (Cash Index): The cash market extended its major (long-term) uptrend to a high of $155 during November and closed at that mark. This was the highest monthly close since May 2015 at $160.83. Based on monthly stochastics, the live cattle cash index is sharply overbought. Theoretical Positions: Traders would likely be long the market with a stop below the previous 4-month low of $135.00.
Feed Cattle (Cash Index): The cash market still looks to be in a major downtrend based on a bearish 2-month reversal during August and September 2022. 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 previous 4-month high of $183.04 from this past August.
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.