As of Wednesday morning, 21 October 2026, cattle strength continues as the market trades at a 3-month high with the December 2026 contract trading at/near 231.95, up 1.750 as of this writing, surpassing the highs of early August at 229.45, and a level this market has not seen since early July. Also of note, the long term daily chart seems to be breaking the neckline of a textbook inverted head and shoulders pattern with the head also being a double bottom from the late August early September lows, coinciding with the 200 moving average at the neckline.
Perhaps of note, this market strength comes amid reports of further Southern Border crossings potentially being opened soon as well as Friday’s anticipated Cattle on Feed report. Outside markets feature weakness across the grain complex amid better weather and harvest pressure and significantly weaker wheat on the prospect of increased exports from the beleaguered Black Sea area, as well initially weaker crude oil WTI now strengthening following inventory draws in the weekly EIA and the associated inflation and dollar implications associated.
As the market trades at levels not seen since early July and May, it remains to be seen how long the strength can continue. Traders may look to position for further upside as the strength continues with a short term call option strategy, perhaps funded by a put credit spread near recent support.
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