I don't have enough information to recommend feeders should hold back, but a $112 cash trade in fed cattle would be positive.
Live cattle seem to be preparing for another wave up and feeders seem poised for the same.
Softer prices right now look like a fourth-wave move prior to a wave-five upthrust to higher prices.
The time and price levels are getting near to scale in some selling strategies for feeder cattle.
A few days more sideways movement and then we could see a resumption of the uptrend soon.
Live cattle and feeder cattle ringing the bells on chart strength signals and macroeconomic signals outside cattle markets seem improved.
Once again, we seem to be facing a crossroads on the live cattle chart.
Weak fundamentals and a move up on the charts say to re-evaluate hedging opportunities.