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Both Live and Feeder Cattle posted higher closes on Wednesday, with the 100-day moving average acting as support in both Feeders and Fats. The recent bearish turn will be hard to overcome and there are still overhead gaps on the charts, but the fundamentals remain bullish, in my opinion. Lean Hogs traded a touch lower yesterday, holding above 200-day support. If that doesn’t hold, I would expect a move toward the February highs just under 78.00. Corn and Soybeans (especially) are having a bullish reaction to Trump’s meeting with XI. A trade-truce has been established for the next year or so and China has allegedly pledged to buy more US Soybeans and Corn. Soybeans have broken out of the year-long trading range, to the upside, and I think that weakness in both market should be bought for now. Soymeal is continuing to rocket higher, leading all of the Grain/Soy complex. Wheat is weaker today, fading away from the 100-day average. If this market can break out above that, it might go a long way to reenforcing the bulls out there. The Fed lowered interest rates by 1/4 point yesterday afternoon, but Powell signaled that there may not be another rate cut in December.
My charts indicate a new trading signal in Natural Gas futures this morning.