Based on the Corn and Bean Action, along with the failure of this trend line I suggest placing hedges for feeder cattle at these levels. We have been on a hell of a rally. Resistance at 166 on the charts looks to be solid. Sell rallies here and look for an eventual break down to the 160 level.
If you are a producer, you can protect these high prices in the face of a correction. Monday would be the day to set the hedge. IF march feeders trade above 168,, then lift the hedge.
This is a larger Trend line to watch in Feeders as well.
Bottom line; there looks to be a good risk /reward here to sell cattle here after solid 20 weeks of rally.
I am not arrogant enough to call a top. But I think it makes sense to protect these extremely expensive cattle. However, I’d be careful using futures. Hang on to your cattle and use a put strategy to protect the downside.