Cattle Find Support (1.9.18)
Jan 09, 2018
Cattle Commentary: Cattle futures turned lower shortly after a firmer open with February futures trading as low as 116.70, a notch below yesterday’s low of 117.775 and the lowest prices since September 26th. Sellers thinned out and we saw futures rally to round out the day with February finishing up .725 at 117.95, trading in a range of 1.30 on the day. April futures finished up .45 at 119.75, trading in a range of 1.40 on the session. We know that funds have begun to roll this week with rumors and now seemingly evidence that some are moving to the sidelines in whole and not rolling to deferred months. Cash trade was reported again at 120 today, a very active start to the week as packers take advantage of the dip. Tomorrows Fed Cattle Exchange has 711 head listed. Feeder cattle manage to hold firmer through the day with March feeders ending up 1.075, this after trading in a range of 2.80. Boxed beef was up yet again today showing strong demand.
PM Boxed Beef Choice Select
Current Cutout Values: 210.49 203.69
Change from prior day: .29 .32
Choice/Select spread: 6.80
Live Cattle (February)
Live cattle started the morning lower, searching for stops below yesterday’s low but managed to find support in our pocket reference in yesterday’s report from 116.60-116.775. This invited some more buying activity which led to futures reclaiming our previous support pocket from 117.85-118.05, this represents a key Fibonacci retracement level from the August lows to the November highs, as well as the 200-day moving average. We continue to feel there is...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeder cattle tested our support pocket again today and managed to hold, that comes in from 139.85-140.55. This pocket represents a Fibonacci retracement from the August lows to November highs, it also represents the 200-day moving average which has been tested but never broken for this specific contract. As mentioned in yesterdays report, our first target remains...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary & Technicals
February lean hog futures finished the session up .15 at 73.125, trading in a range of 1.00 on the day. Continued talk about strong demand and exports has kept the market elevated near contract highs. We continue to feel that the value is...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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