live and feeder cattle futures news and research – BrokersEDGE – 3-7-19

Kervin Olson’s cattle herd includes Angus with black Simmental and red Angus they cross with Charolais crosses. With low corn and soybean prices at break-even levels this year, the cattle and strong beef prices may be the primary cash crop, Olson says. Photo taken Sept. 9, 2015, near Amherst, S.D. (Forum News Service/Agweek/Mikkel Pates)(Embargo to Sept. 22, 2015, 1 a.m.)

Live Cattle (April)
Today’s tight ranging trade did little to change the technical landscape. Trend line support is drifting higher each day, offering support to the market. That trend line will come in tomorrow near 128.40, shifting our support pocket up to 128.00-128.40. On the resistance side of things, first resistance comes in from 129.475-129.65. This pocket represents previous contract highs along with other previously important price points. A close above here will likely take us to new contract highs, above 130.45.
Resistance: 129.475-129.65***, 130.45-131.00**, 134.55****
Support: 128.00-128.40***, 126.60-127.25**
Feeder Cattle (April)
Feeder cattle extended losses today making it 5 consecutive days of lower prices, the longest losing streak we see for the April contract. Coming in to the week the chart was looking constructive, but the first three days of this week have done some damage. With that said, we would rather be buyers than sellers at these levels. If the bulls cannot gain traction tomorrow, we would likely look at moving to the sidelines for better prices. A failure to find relief tomorrow would open the door for risk down to 141.30, the lows from December.
Resistance: 144.50-144.95***, 146.10-146.375**, 147.80-147.825****
Support: 142.60-142.90**, 140.35-141.30****

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