Live Cattle Fundamental and Technical Update

Monday’s Slaughter is estimated at 125,000. Unchanged from last week, but 8,000 more than the same week last year.

Monday’s Cutout Values
Choice: 270.54, Down .78 from the previous day.
Select: 247.45, Down 1.44 from the previous day.
Choice/Select Spread: 23.09

5 Area Average Cattle Price
Live Steer: 140.14
Live Heifer: 138.35
Dressed Steer: 226.03
Dressed Heifer: 225.95

Live Cattle
Technicals (August): August live cattle got taken to the woodshed yesterday, along with nearly every other market out there as a risk-off sentiment fed on itself ahead of this week’s Federal Reserve meeting where the chances of a .75 rate hike went from 25% to 94% over the span of one trading session. As painful as yesterday may have been, it prices in the bearishness that comes with a more rapid rate increase and leaves room for outside markets to rally if the Fed only comes in with a .50 hike. If the Fed hiked rates a full point, that would obviously be another story. Needless to say, outside market money flow and sentiment will be a key catalyst through tomorrow’s Fed meeting.

Resistance: 136.025-136.625***, 137.90-137.95**, 138.75**, 140.275**

Pivot: 135.10-135.475

Support: 134.40-135.10***, 132.45-132.775**, 129.975-130.725****

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