Cattle Commentary: Cattle futures finished the session mixed with fat cattle finishing in the green and feeders in the red. April live cattle closed up .55 at 125.35, trading in a range of .95 for the session. March feeder cattle finished the day down .225 at 146.75, trading in a range of 1.625. Cash trade has been non-existent this week with talks of 1-2 higher from last weeks 123. Today's Fed Cattle Exchange offered 494 head but yielded zero sales; 123.75 was passed on. We had a cold storage report this afternoon, that showed beef stocks for the end of December at 489.543 million pounds, this was on the low end of expectations and are down 14% from last year. Market participants are anxiously awaiting Friday afternoons cattle on feed report. The average On Feed estimate is for 107.7 with the range of estimates coming in from 107.2-108.1. The average Placements estimate is 96.9 with the range of estimates coming in from 93.3-100.3. The average Marketing’s estimate is 98.6 with the range of estimates coming in from 97.9-100.3.
Lean hog futures finished higher across the board, with the more active April contract leading the way. April futures finished the session 1.225 higher at 75.875, trading in a range of 2.075. This afternoons cold storage report showed pork stocks at the end of December at 490.782 million pounds, this was on the top end of expectations and up 3% from last year. We continue to see fundamentals and technical softening in the near term, providing little upside above contract highs. The market made an attempt at yesterdays lows and key support from 73.60-74.05 but managed to hold, this invited some new buyers to step in technically. The market tested our resistance pocket from....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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