On Tuesday July 17, 2018 the August Live Cattle contract consolidated after Monday’s limit up move. A nominal new high (107.60 vs. Monday’s 107.55) above the 107.35 resistance level failed to attract buyers.
Feeders have seen the same type of trade action seen in the Live Cattle prices with the exception that prices have pushed higher on each push up and pulled back to a much smaller degree on each pullback.
On July 12 the stocks and all positions report will come out. The funds carry huge short positions in the grains and will probably cover on a negative report just like they did on Friday after falling hard last Thursday.
Last week was one of the most interesting weeks that I have experienced in the commodity market in a long time. On June 25 cattle were limit down. On June 29 cattle were limit up—the only difference was that we were one week from a cattle on feed report which was not necessarily negative.
Coffee futures in the September contract are trading lower for the 3rd consecutive trading session after settling last Friday in New York at 116.95 while currently trading at 115.30 a pound continuing its bearish momentum as prices are right near a 3 year low.
On Tuesday June 26, 2018 the August Live Cattle contract opened steady at 102.90, traded to the high at 103.725 then broke down, trading through the 103.00 support level on its way to the low at 102.00.
This past weekend, I went to Chicago for the R.J.O'Brien annual meeting. There I saw many brokers from across the United States with whom I have ties and met quite a few brokers that I have never talked to before.
On Wednesday June 20, 2018 the August Live Cattle contract opened at 106.50, traded to the low at 106.10 and then broke out to a new high for the move, trading up to 107.625, just above resistance at 107.35.