Live Cattle (October)
October live cattle futures gave back yesterday’s gains plus some as the market failed to break out above the top of last week’s range. Our outlook continues to be bleak for the October contract with the simple premise that we should have rallied harder after the deep discount two weeks ago. Sure, cash is higher than the board, but that doesn’t mean we have to see the board narrow the gap right away. We believe the board is telling us something else (price precedes news). With all our negativity around the October contract, we do see a bright spot in the April futures and will consider establishing longer term long positions with clients who agree.
Resistance: 101.675**, 103.75-104.85***
Feeder Cattle (October)
As with the fat cattle, October feeders is something we have been skeptical of. 135-136 has and will continue to be the brick wall the bulls need to chew through. Until then, the bears are in control. First technical support comes in at 130.975, a break and close below leaves the door open for a retest of contract lows at 127.325.
Resistance: 135.25-136.575**, 137.825-138.20****, 139.575-140.425**
Support: 130.975*** 127.325-128.775***
PM Boxed Beef / Choice / Select
Current Cutout Values: / 236.76 / 210.71
Change from prior day: / (1.30) / (.95
Choice/Select spread: / 26.05
Lean Hogs (October)
October lean hogs started to give back gains from yesterday’s trade but manage to fight back into the close. We like the idea of being long hogs but the chart is ugly as sin and contract lows at 58.20 are not out of the question. We believe that the deffereds hold more potential.
Resistance: 65.825-66.525***, 69.90-70.825****
Support: 60.875**, 58.20-59.50****
Grains, Livestock, Gold, Oil, S&P, Currencies
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.