Live and feeder cattle futures gave up ground to begin the week, as is the seasonal tendency during the first week of December. January feeder cattle posted an “outside-day-down,” a bearish reversal pattern.

Although volume returned Monday after dipping through the holiday-shortened week, activity was still in line with the average from the week prior to last, making the pattern less compelling. Remember, feeders reached overbought territory after posting 10 consecutive days of gains coming into the week and were due for a pullback.

The risk of loss trading commodity futures and options can be substantial. Investors should carefully consider the inherent risks in light of their financial condition. The information contained herein has been obtained from sources to be reliable, however, no independent verification has been made.  The information contained herein is strictly the opinion of its author and not necessarily of Ever.Ag and is intended to be a solicitation. Past performance is not indicative of future results.