Live Cattle Futures Soar on Crude Oil Price Drop

The price of October live cattle futures has reached a three-week high, according to the daily chart. The moving average convergence divergence (MACD) indicator is also in a bullish posture, with both lines trending higher.

Recently falling crude oil prices and record highs on major U.S. stock indexes have boosted consumer confidence, making consumers more willing to pay up for beef at the meat counter.

The U.S. cattle herd remains near historic lows, which could contribute to rising live cattle futures prices. A move above chart resistance at $230.325 would give the bulls more power and create a buying opportunity.