Cattle Surge Higher!
Feb 15, 2018
Cattle Commentary: Cattle finished the day stronger despite the lack of new news on the wire. April fats finished the session up 2.05 at 127.275, trading in a range of 2.20. March feeders finished the session up 1.725 at 149.90, trading in a range of 2.18. Cash cattle continues to be non-existent, if we don’t see anything develop by the afternoon tomorrow bulls will likely be feeling pretty comfortable going into a three-day weekend. Our bias remains bullish with an objective of contract highs. Obviously, cash developments and outside market volatility could throw a wrench into that, so we remain nimble. Boxed beef finished the day stronger.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 209.04/ 205.14
Change from prior day: /1.23/ 1.63
Choice/Select spread: / 3.90
Live Cattle (April)
April live cattle finally caught the bid we were looking for today, breaking out above our resistance pocket from 126.125-126.30, this opened the door to our next pocket that we have had listed as 127.20-127.35. Previous resistance now becomes first support. We continue to believe that the market will make a run at the contract highs from November 6th, this comes in at 130.10. If the bulls cannot take advantage of price action and prices dip back below 126.125, look for another leg lower 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 feeder cattle managed to feed off of yesterday’s momentum posting a high of 150.125 and testing the next line of resistance which we had listed in yesterdays report as 150.25. If the bulls can chew through this level, then we would expect to see 152. We continue to believe there is a lot of strength left in this market and a run at contract highs would not be out of the question. On the flip side....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 and Technicals (April)
April lean hog futures made a run at technical resistance which we had listed in yesterdays report from 71.15-71.35, the market failed to attract new buyers which invited the sellers back into the market. April futures finished the session down .95 at 69.70, trading in a range of 1.625 on the session. Though there is probably intermediate term value here the market may continue to overextend itself on the down side. 67.91 is the “last line of defense” a break and close below could accelerate the selling pressure down towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Sign up for 1 or all 5 of our daily Blue Line Express commodity reports!
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.