Cattle Futures Test the Limit
Dec 26, 2017
Cattle Commentary: Cattle futures had themselves a day with February live cattle finishing up 2.95, briefly touching limit today. March feeders finished the session up 2.75, trading in a range of 3.325 on the session. Fridays USDA Cattle on Feed report came in more bearish than expected. report showed cattle on feed at 108%, this compares with range of estimates from 105.6-107.4. Placements came in at 114%, this compares to the range of estimates from 99.2-111.0 and is the largest placement number for the Month of November since 2007. Marketed came in at 103, this compares with the range of estimates from 101.6-103.5; this was the largest November read since 1996. We had talked to clients about taking this report with a grain of salt as we have seen the market have opposite reactions in the past. Also helping ease some of the bearish headlines was a friendly Cold Storage report. That report showed 487 million pounds, this is down 4% below the previous month, and 8% below last years read. Fridays Commitment of Traders report showed that managed money reduced 9,200 contracts, this puts their net long position at 90,548. The bulk of last week’s cash trade was at 120 and 190 dressed. Be prepared to see a thin volume in a week that is sandwiched between two holidays.
PM Boxed Beef Choice Select
Current Cutout Values: 202.60 190.83
Change from prior day: 3.04 2.95
Choice/Select spread: 11.77
Live Cattle (February)
When February live cattle opened today, they put their low tick of the day in, the market started moving higher and didn’t look back. 120.70 was a big level for us on a closing basis, this represents.......Please sign up for a Free Trial to see our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeder cattle spent the whole day in positive territory after finding technical support at the 200-day moving average the previous two sessions. That will continue to be key support for the time being, that comes in at 138.75 this afternoon. The close above 139.85 opens t he door to....Please sign up for a Free Trial to see our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary & Technicals
Lean hog futures started and finished today's session with a bang, continuing their surge higher from Fridays session. February lean hogs finished up 1.60, trading in a range of 1.775. Fridays Hogs and Pigs report was neutral to bearish showing inventory at 102.4%, kept for breeding at 101.1%, and kept for market at 102.5%. It was the....Please sign up for a Free Trial to see 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.