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Cattle New Highs & Hogs At Lows



Live Cattle futures made new high contract closes Thursday. All contracts except for August Live Cattle made new contract highs. Cattle aren’t overbought. The RSI on August is 62.   With Live Cattle discount to cash, there is more room to the upside.  However, Live Cattle/Lean Hog spreads with RSI near 80% could see some retracement.  With concern about the US budget debit, ahead of a 3 day weekend, and Lean Hogs near oversold, a retracement on spreads could pull back Live Cattle futures.


Thursday was another day of new contract lows. With Hogs now below the CME Lean Hog Index, the chance of a retracement is likely. The RSI on July Lean Hog futures is 22.  With a 3 day weekend ahead it wouldn’t be unusual to see profit taking Friday.  But spreads aren’t oversold. The July/August Lean Hog spread RSI is 65 percent. The August Live Cattle/August Lean spread is 80%.

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Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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