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Cattle finding support

Published on: 00:10AM Feb 08, 2018

Cattle Commentary:  Cattle futures were under pressure today but held up relatively well in our mind.  Despite the pull back today, we have become more optimistic on future prices and welcome a little lower price for a buying opportunity (see technical below).  April live cattle finished the session down .50, trading at 124.075, trading in a range of 1.025.  March feeders finished the session down .325 at 148.40, trading in a range of 1.60.  The S&P started to see some more jitters in the final hour of trading, selling off roughly 50 points; for you Dow watchers, it was close to 300 points.  If concerns begin to increase again, we expect to see that volatility spill over into other markets including cattle.  Cash trade has been relatively light this week.  There were 148 out of 829 head sold on the Fed Cattle Exchange this morning, those came in at 126.   Boxed beef managed to work its way higher today. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 209.37/ 203.14

Change from prior day: / .94 / .41

Choice/Select spread: / 6.23

 

Cattle Technicals

 

Live Cattle (April)

 

April live cattle tried to get some footing early on but ran out of gas just shy of yesterdays highs.  The pressure in today's session was somewhat modest compared to what we have seen recently which is a sliver lining for the bulls.  We have turned more optimistic in the market despite being towards the top end of the range.  The trend of higher lows and higher highs is very constructive for chart watchers.   We will be working with clients on the buy side (short covering/new longs) if we can see futures jiggle down towards....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 feeders posted an inside day (trading within the previous day’s range) failing against the resistance pocket we outlined in last night’s report which came in from 149.40-150.05. We have turned more optimistic on the feeder cattle market but welcome more of a pull back as an opportunity to start buying; price is what you pay, value is what you get.  146.45 and 145.50 are the first two targets we have in mind.  This represents the 50% Fibonacci retracement from the August lows to the November highs, along with moving averages and other previously important price points.  If the market can maintain price action above....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 (April)

 

Just by looking at the chart you may think you’re looking at Bitcoin, but it is lean hogs.  April futures gaped lower and didn’t think look back finishing the day down 2.25 at 69.175, trading in a range of 1.95 (gap).  In last nights report we were a little premature in looking at the selloff as a buying opportunity on the first test.  Though the market is the most oversold since August (when we bottomed), we would error on the side of caution in terms of picking a bottom, the only thing you get from that is stinky fingers.  The next line in the sand that we are looking at comes in at....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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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.

 

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