Cattle set for another move higher?

Published on: 22:05PM Sep 25, 2018

Last Trades:

LEV8: .325 at 112.50, trading in a range of .625

LEZ8: .40 at 117.40, trading in a range of .825

GFV8: .225 at 156.525, trading in a range of 1.025

GFX8: .675 at 156.60, trading in a range of 1.20

 

Cattle Commentary:  Cattle futures started the day on softer ground but managed to stabilize after finding support near yesterday’s lows.  In yesterday’s report we mentioned that we would strongly consider buying pullbacks, that has not changed over the last 24 hours.  Techncials remain strong and fundamentals don’t seem overly bearish at this particular point.  We will keep a close eye on the development of cash trade this week.  There has not been much cash, but we would not be surprised to see steady to firm with last week’s trade of 174-175 dressed and 110.50-111.00 live.  Tomorrow’s Fed Cattle Exchange has 426 head offered, not a lot, but something to draw a line in the sand. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 205.73 / 194.87

Change from prior day: / (.43) / (.52)

Choice/Select spread: / 10.86

 

Tech Talk

 

Live Cattle (December)

 

December live cattle worked lower today but found some eager buyers into the close.  The chart remains very constructive and many of the significant technicals remain intact from yesterday’s report.  We would welcome a pullback towards 116, this is the original breakout level, previous resistance now becomes significant support.  On the resistance side of things, the market has found it difficult to claim ground above the February highs of 118.975, this has been and will continue to be a meaningful battleground area between the bulls and the bears....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

Feeder Cattle (November)

 

November feeder cattle staged an inside day today, trading within the previous day’s range.  In our opinion, the chart remains friendly and bulls have reason to be optimistic.  Significant support remains intact from 154.70-155.40.  This pocket represents the February and July highs, as well as the breakout from September 14th.  So long as the bulls can defend this on a closing basis they remain in control.  On the resistance side of things....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.

 

Lean Hogs (December)

 

Lean hog futures marched higher today with October leading the way.  Majority of the volume is in December so that will continue to be our month of focus.  December futures finished the session up .75 at 57.725, trading in a range of 1.475.  The market is continuing to hold trendline support and looks primed for a move out above technical resistance.  First resistance remains intact from....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable 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.