Cattle Testing The Limits

This is Matt Rice with the Market Line Report for March 25th. Over the last 5 days we have dropped off in the cattle market, testing the 50 day down limit. Oliver Sloup goes explains why, from the CME in Chicago with II Trader.

Sloup "There's a couple of things I want to take a very close look at, we saw the cattle market really get a bid over the last couple of weeks. We saw the selling come in ahead of the cattle on feed report on Friday, and since then we have had 5 straight down sessions. In those 5 sessions alone, have negated 17 sessions of upward momentum in the live cattle and feeder cattle. So I want to look at some technical levels as we close out the week. I'm looking at the June now, that's where a lot of the volume is going to be in that June contract, $1.27 is going to be a very pivotal spot."

Chicago May Wheat ended the day unch at 463 ¼. May corn ended the day up 1 ½, at 369 ¾. Portland prices for soft white wheat of 10 ½ % protein for March were up 5, ranging from 5-38 to 5-43. Hard Red Winter wheat with 11 ½ % protein, prices for March were dn ½, ranging from 5-41 ¾ to 5-51 ¾. DNS wheat with 14 % protein, prices for March were up 2, ranging from 6-04 to 6-14 even. April Live Cattle closed yesterday up 40 cents, at 135.97 ½. March Feeder cattle were dn 42 ½ cents, at 160.97 ½. March class III milk was dn 4 cents, at 13-78.