These articles are brought to you by:
COMMODITY REVIEW AND OUTLOOK
195 Route 6A, Suite 6, Orleans, Massachusetts
(September 24, 1997) CATTLE: SHORT TERM–Commercial selling has been pressing the cattle this week. Packers lowered their bids for cattle, due to the fact that cash movement has been slow. Option-related selling was also a feature. December cattle have a seasonal for higher prices.
LONG TERM–There are tight supplies of feeders. While this is obviously bullish to feeders, it also suggests potential tightness in live cattle in December, February and April contracts. Traders should begin to focus on feeders and live cattle as having good potential.
RESISTANCE–Resistance basis October may appear near 6850, 6940-6920, 6960, 6990-6995, 7020 and 7050.
SUPPORT–Support basis October lies near 6790-6805 (current levels), 6722, 6707, 6690.
RECOMMENDATION–Aggressive traders might consider buying the October cattle at current levels with 50-100 point stops. Look for a test of the 6960 area, with the potential for a continued rally. Traders should take profits in that area with the idea of re-entering on a pullback. Long-term bulls should buy December cattle at current levels for the long haul. Option traders might buy December calls.
M. Steven Morgan
Added to the WWW 09-26-97
Last updated on 09-28-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com
