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May 06, 2023
While in the midst of a 6 day downtrend, losing a total of 2.1% ($3.87), A possible change of direction spotted from yesterday; the Livestock future increases 0.25% to close at $161.97 per pound yesterday.
The Livestock future upside coincides with further encouraging market factors as highly important Average Hourly Earnings data from United States beat analyst expectations of 0.3% with a reading of 0.5%. United States Non Farm Payrolls beat the 180,000 projections, with 253,000. United States Unemployment Rate improved upon its previous reading of 3.5 with a new data release of 3.4.
Trend and momentum analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to asset volatility analysis, Live Cattle's lower Bollinger Band® is at $161.5, indicating that the market is oversold and fertile for new buyers.
With market volatility ebbing, the current technical outlook indicates Live Cattle will remain range-bound for the immediate future.
Meanwhile, after ending yesterday's session at $223.15, Feeder Cattle lost $1.4 and is trading around $221.75.
Trading mostly sideways for 11 months. CME Live Cattle has fallen back around 3.92% from the significant high of $168.18 set a month ago.
