Can We See Light Support on a Lackluster Report?

Today’s report is not expected to make any large changes to carryout. Following this report we may see

trade start turning attention towards the acreage report on the 28th. That could mean light support.

Yesterday’s support did not cause an open interest decline so while some of it was likely fund buying, it

may not have been large scale short covering.

Cattle – Cash trades in KS/TX were $2 higher at 185, NE was $3 higher at 185.50

↔ Yesterday’s PM BB was choice +1.70 Select +1.17 packer BE at 191.41, packer cushion $8.64

↑ Cash trades were $2 higher in the south and $3 higher in the north, both higher than expected

↔ While most of cash traded at 185, futures are still priced above that factoring in near 190

↑ BB took our recent highs and now choice + select is at 603, the next “resistance” level is 610

↔ While finding areas where BB stalled on previous moves higher is worth knowing, we may not want

to expect resistance on this bounce exactly at a previous level like we do when using chart analysis

↔ What we can say is that if BB continues higher, futures may break out higher in its range as well

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