Cattle futures end in the red

Published on: 23:31PM Feb 05, 2018

Cattle Commentary:  Cattle futures started the day firm but faded with the outside markets.  April live cattle finished the session down .65 at 125.475, trading in a range of 2.075.  March feeders were down 1.325 at 149.60, trading in a range of 3.90.  Volatility expansion was the theme in today’s outside markets, we expect to see that carry over into commodity markets in the overnight session and to the cattle trade tomorrow.  Will the 10% pull back in stocks over the last week lead to demand concerns?  Time will tell, but the fact that we are asking that questions will likely take some premium out of the market.  Coming into the week, market participants were expecting to see cash steady to slightly higher, we will keep a close eye on that and keep you posted.  Boxed beef was slightly higher today but is expected to be limited until the back half of February.    

 

PM Boxed Beef                        Choice                        Select

Current Cutout Values:           209.43                        204.16

Change from prior day:          .33                              .71

Choice/Select spread:            5.27

 

Cattle Technicals

 

Live Cattle (April)

 

April live cattle continue to flirt with the top end of the range, testing our resistance pocket from 127.20-127.35 which represents the end of November highs.  The chart was looking half-way friendly (and still does), but the bulls really wanted to see a close out above that pocket to encourage a run at contract highs.  The inability to stage a true breakout could lead to long liquidation.  The first significant pocket of support comes in from....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 have been posting higher highs and higher lows.  Higher highs were achieved again today but the bulls were unable to gain the interest of additional buying activity which led to pressure in the back half of the session.  Though the market looks constructive on the intermediate term, a pull back towards....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)

 

April lean hogs finished the day down .225 at 73.325, trading in a range of 1.70 on the session.  Thoughts that cash could continue to soften is leading to some long liquidation which is keeping a lid on any significant rally attempt.  First resistance this week 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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