Quite a move yesterday in Live cattle .Here is a 5 minute chart of the action as it was sitting near lows and then sky rocketed up to touch limit.This occurred over last 30 minutes of trade.
Some talk of higher trade in the spot market,This proved to be false as the Action was steady to lower in Spot.Box beef values continue to print sideways to lower.So what was reason?I think Over sold conditions at an Important support area caused buyers to step in and than a good ole fashioned squeeze into the close.Cattle markets are very irrational more so then most markets.There is a sense in the cattle markets that someone knows something more than I do so If market moving violently one way I better join in.
Here is daily chart of LCV I believe a bottom has been found.This more so than anything else was cause for run up in prices.
Price action broke through the lows and then closed up near highs,leaving the support area of 105.25 in tact.This will stay that way until a close below this level negates the double bottom pattern.Problem with cattle is similar to Corn and Wheat just too much of it!