Cattle Commentary: Cattle futures continued with their upward momentum in today's session despite the lack of new news coming across the wires. February live cattle finished the day up 1.05 at 122.025, this after trading in a range of 1.075 on the session. The now more active April contract finished the session up .775 at 123.55, trading in a range of 1.00. Feeder cattle also melted up with the March contract finishing the session up 1.325 at 147.30, trading in a range of 1.50. Cash trade has been relatively non-existent this week outside of a pen on the Fed Cattle Exchange that sold for 119.75. Though we do think that this move is over extended on the near term, shorts should be cautious of a higher cash trade in the after hours tomorrow if we don’t get anything sooner. Packers don’t seem to be in a major rush to chase the board higher here, but it seems higher cash is certainly being baked into the cake to some extent; tomorrow should be an interesting day to say the least. Boxed beef prices made a rebound today with select narrowing the spread.
PM Boxed Beef Choice Select
Current Cutout Values: 205.69 200.87
Change from prior day: .39 1.26
Choice/Select spread: 4.82
Live Cattle (April)
April live cattle marked their fifth consecutive close higher, trading as much as 5.55 higher from low to high in that time (no, there is no superstition with 5’s to trade off of). The market is now right back to levels seen just two weeks ago with the RSI at 57, which is more neutral than overbought. This is a key technical level as we have the 50-day moving average along with trendline resistance from the November highs. The market closed near the top end of the technical resistance pocket we have been referencing, tomorrows close will be an important one on a technical basis and will likely help set the tone for next weeks trade. A failure to extend with conviction opens the door to long liquidation towards....Please sign up for a Free Trial at Blue Line Futures in order to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeder cattle have strung together a solid week of trading, trading and closing higher each day. The market has now found itself back at technical resistance which we have defined by the 50 and 100 day moving average, along with the 50% retracement (middle of the range) from the August lows to November highs. This pocket comes in from....Please sign up for a Free Trial at Blue Line Futures in order to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary & Technicals (February Technicals)
Lean hog futures consolidated higher today with February futures finishing the session up .575 at 73.30, trading in a range of .975 on the day. The more active contract is now April, we will be shifting to those technicals next week; they finished up .675 at 76.20, trading in a range of .95. The market was seemingly calmer today than we have seen it recently as the bulls and bears try to catch their breath. The fundamentals of better cash and stronger demand have been supportive over the past month, but many bears are suggesting that it may have run its course (that’s why they are the bears). A failure to see a conviction close above contract highs will likely prompt some profit taking and long liquidation. First technical support comes in at....Please sign up for a Free Trial at Blue Line Futures in order to view our entire technical outlook and proprietary bias and levels.
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