We’re keeping an eye on live cattle and feeder cattle futures as markets move into the second half of the month, and momentum remains firmly in place. Managed money fund traders have not slowed down their buying activity, continuing to provide strong underlying support for the cattle complex.
In live cattle, speculative positioning has reached notable levels. Live cattle net long positions now total nearly 100,000 contracts, marking a recent high and highlighting continued confidence among fund traders. This level of commitment suggests expectations for sustained strength, even as prices test key technical areas.
Feeder cattle are showing similar bullish characteristics. Feeder cattle net long positions are now at seven-week highs as we end the week, reflecting steady interest from managed money. The feeder market continues to benefit from tight supplies and firm demand expectations, but technical levels remain critical in the near term.
From a chart perspective, traders are closely monitoring downside support. April live cattle are approaching an important support area near 231–232. Holding this zone could help stabilize prices and maintain the broader uptrend, while a breakdown below that level could invite increased volatility.
In feeder cattle, attention is focused on nearby contracts. March feeder cattle need to hold the 352–353 area or better by today’s close. That zone represents a key technical threshold, and maintaining it would help reinforce current bullish sentiment among traders.
Adding another layer of uncertainty, Monday’s holiday will keep buyers and sellers on edge. Holiday-thinned trade often results in lighter volume and wider price swings, making technical levels even more important as the market heads into the shortened trading week.
Overall, the cattle markets remain well-supported by managed money interest, but traders are increasingly focused on whether key support areas can hold. As the month progresses, futures direction is likely to hinge on technical performance, fund activity, and how the market reacts to reduced participation around the holiday.
Audio Reporting by Mark Oppold for Southeast AgNet.