Feeder cattle futures led another move to the upside for the cattle market this week amid another round of technical buying. 

November feeders traded $5.32 higher on Thursday to a new contract high of $274.15 per cwt. Technical buyers came in this week, blowing past previous resistance levels, including the previous high of $367.65 posted in August. 

Much of the rally has likely been speculative short-covering due to declining open interest since the first of the month. 

Meanwhile, the recent gains brought in larger open interest in support of the current move. December live cattle futures also rallied $1 higher on Thursday to $239.90, though prices remained about $4 below their contract highs of $243.57. Prices also broke above a downward sloping trendline, which could encourage additional buying.

Boxed beef prices have been recovering this past week, with the choice cutout trading at $366.66 per cwt, which was about $4 higher than last week’s lows. 

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.