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Northwest Iowa | Looking at the various feeder cattle charts, I doubt that they have bottomed yet. The daily fat/feeder cattle usually have a very hard sell off to a major bottom. They tend to have several days of hard down with almost no bounce. You hate to look as it is so painful. that has not occurred yet. The monthly should be aiming for the 120-130 area on the nearby contract. There should be some pretty good buying (whales?) in the 120 area as that was a long term area of resistance- which now becomes support. The livestock markets tend to make lows inverse of the way grains do. Grains tend to rocket to finish off a bull move. cattle and hogs puke out to the lows. Livestock also tends to snap back fairly quickly once we see that final low. Hogs are in the time window to make a low but might not have much spark until after the holidays. The shortened kill schedules hold things back. In the grains I like to hear that commercials are buying. They tend to take a position and defend it. Meaning -if they are buying and the market sets back they buy more as value is seen. Local night manager at hog plant told me there are plenty of hogs to get dead but that meat is moving. | |
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Technical guys (feeders)
