AUDIO COMMENTARY

If you need to do something in cattle we like being proactive up here at resistance
Very choppy sideways action today
This crop is still unknown
Harvest behind pace still
Are harvest delays bullish or bearish?
Watching basis and spreads for keys
Don’t fall for basis contracts with a carry market
Come up with a game plan
This market will pop eventually
What if SA ends up having issues?
Want to hold report day lows
Have some leverage for yourself
When will the truth come out?
Might need to wait until Jan for changes
Need price action to say the USDA isn’t right
Corn seems dead. Why it’s not
If you are backed up against a wall
If you have to sell off combine & don’t like prices
Be proactive. Not reactive
Cattle sitting in target zones with bearish divergence (charts below)*
Chart breakdowns below audio*

Listen to today’s audio below

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CHART BREAKDOWNS

Dec Corn 🌽

If we are going to carve out some lows we’d like to see it happen here.

We gave back 61.8% of the entire rally off contract lows. The most common level.

Now testing an area that’s been very key support or resistance multiple times.

This would be one of those spots we’d expect us to find some life. But if you fail to hold there is air to the downside. Personally I’d like to think we hold this box.

Nov Beans 🌱

I attatched the daily chart and 4-hour for better examples.

On the daily, we have a clear downtrend we need to break out of.

For us to be confident the bottom is in we need to clear that orange box and get back into the prior range. (The 4-hour chart shows this better).

To the downside we need to hold the recent lows. They came at the 38.2% level down to the June lows.

If we fail to hold that level there is a large volume gap lower towards the 50% level and those May highs.

Here is the 4-hour chart.

We are basically in no mans land here waiting for a direction to be decided.

We had that old range. We broke below it. We’ve now came back up and rechallanged that old support twice. Rejecting both times.

So that’s the clear level we need to break above.

Again if we take out the recent lows there is plenty of air to the downside.

Everything between the recent lows and that orange box is simply noise.

Dec Chicago Wheat 🌾

Sitting at a major level.

The 61.8% retracement down to the June lows.

We also have bullish divergence on the RSI. A possible sign that downside mometum is getting weaker.

If we are going to bottom this would be a high area of interest, hence the buy alert today in wheat.

MPLS Wheat 🌾

Same thing here.

Sitting right at the 61.8% retracement. This same level has been a big area of both support and resistance in the past.

We also have bullish divergence on the RSI which adds more confluence to us finding support here.

However, if we break below this level there is very little support holding up this market. So we want to find life here or there is downside risk.

Dec KC 🌾

Similar set up here. However, KC does not have bullish divergence. Although is over sold.

But like the other two we are sitting right at the 61.8% level and this high area of volume.

We want to see us hold this level.

If we fail to do so, there is virtually zero volume holding this support up below here.

Nov Feeders 🐮

We are in that target zone. So we like managing some risk up here.

We’re in the golden zone up to the May highs.

We also have some bearish divergence on the RSI. A possible warning sign that upside momentum might be starting to slow down. So just another reason to have caution up here.

Dec Live 🐮

Weaker than feeders on this move. So the target box is a set of fibs lower. Being the 38.2% to 50% levels rather than the 50% to 61.8% levels like in feeders.

So like in feeders, we like managing some risk up here. This area has been a high resistance and support area as well which may make it hard to bust through.

We are also showing some bearish divergence on the RSI here as well.

Doesn’t mean cattle can’t keep running, but it’s a reason for caution.