Both Oct live and feeder cattle have roughly one week to expiration and it seems like the market has been waiting for the Cattle on Feed report to pick its direction. Today we will get the first glance of the markets reaction. Barring any significant developments in the corn market, both feeder and live cattle appear to be near term oversold and I would look to buy strength for a quick bounce, though there is no telling what role the grains may play in the long term.
Dec lean hogs appear to have found some support near 58.50-59 and If that can hold I would be willing to take a stab at a long trade targeting 62 in the near term. Otherwise 56-57 on the downside should act as short term support.
by Keith Amirault