Beef production has decreased in the United States.
Technical Analysis Summary Live Cattle: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, LCATTLE: D1 is in a long-term uptrend and has formed an ascending triangle pattern. It should break out to the upside before opening a position. Several technical analysis indicators have generated signals for further upward movement. We do not rule out a bullish movement if LCATTLE: D1 rises above the last high and the upper Bollinger Band line at 166. This level can be used as an entry point. The initial risk can be limited below the Parabolic signal, the last three lower fractals, the lower Bollinger Band line, and the 200-day moving average line, around 157. After opening a pending order, the stop loss can be adjusted along with the Bollinger Band and Parabolic signals to the next fractal low. This way, we improve the potential profit/loss ratio in our favor. The most cautious traders can switch to the four-hour chart after entering the trade and set a trailing stop loss in the direction of the movement. If the price surpasses the stop level (157) without activating the order (166), it is recommended to cancel the order as there are internal changes happening in the market that were not considered.
Fundamental Analysis of -
In the US, beef production has decreased. Will the growth of LCATTLE quotes continue?
According to the United States Department of Agriculture (USDA), frozen red meat stocks in the United States decreased by 5% y/y as of May 1, 2023, compared to the same date in 2022. Specifically, frozen beef stocks decreased by 16% y/y and 6% m/m. Beef production in the United States in April 2023 decreased by 11% y/y and amounted to 2.07 billion pounds. The main reason for this decline has been the ongoing drought. It's worth noting that the USDA does not rule out further reductions in beef production in the United States, with an expected 8% y/y decrease in 2024. Currently, the price of LCATTLE (Live Cattle Futures) is approximately at the level seen in early February of the current year. Meanwhile, FCATTLE (Feeder Cattle Futures) prices have increased by over 25% during the same period.