Live cattle futures surged out of the gate on Monday, posting a third consecutive session of gains. June live cattle traded $1.42 higher to close at $240.20 per cwt, the highest close since the contract high of $243.75.

Monday’s gains were an extension of last week’s gains that put the contract $5.35 higher on the week. Prices are testing a technical resistance area that contained prices in February. Today’s strong close makes a test of the contract highs likely.

Cattle futures have largely ignored a weaker stock market over the past few sessions. The S&P 500 posted fresh multi-month lows on Friday, with pressure continuing this early this week. The market is closely monitoring consumer demand ahead of the spring and summer grilling season.

Cattle future testing overhead resistance does put prices at risk of long liquidation, especially with the weaker stock market.

Meanwhile, weak equities have so far failed to pressure wholesale beef prices despite their downturn. Boxed beef prices were higher on Monday. Choice cutout values rose $1.13 higher to $394.10. Tight cattle and beef supplies have kept beef prices strong seasonally.

Cash live cattle prices have been largely supportive. The five area weighted average cash index ticked higher last week to $235.69 per cwt.

May feeder cattle futures traded $2.02 higher on Monday to close at $361.85 per cwt. Prices pushed back toward a resistance area from the February high of $367.10.

Cash feeder cattle prices pushed higher last week as well.

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