Choppy Cattle Trade
Jan 30, 2018
Cattle Commentary: Cattle futures started the session lower on the back of follow through from yesterdays close. It was an overall choppy session with fats and feeders mixed. April live cattle finished today’s session down .875 at 124.125, trading in a range of 2.175. March feeders ended the session on positive ground, up .425 at 147.425, trading in a range of 3.25. Packers now have a decent amount of inventory which gives them an advantage in the near term. We have seen some cash trade today; the bulk at 126 in KS, TX and NE with cash backing off to 125 in western Nebraska. The bulk of last weeks trade came in at 127. Boxed beef prices were firmer again today.
PM Boxed Beef Choice Select
Current Cutout Values: 209.69 204.37
Change from prior day: .58 .24
Choice/Select spread: 5.32
Live Cattle (April)
April live cattle saw a “whoosh” lower to start the session, testing and holding significant support which we outlined in yesterdays report as 122.475-122.75. This pocket contains the 50 and 100 day moving average, a key Fibonacci retracement, and a some previously significant price points. If the bulls cannot defend this support pocket this week, we could see a retest to the bottom end of the range from....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 had a choppy session to say the least. The market made a run lower to start the session but managed to fend off the bears into the afternoon session. The market has been making a trend off higher lows over the past month, are higher highs next? Sure, there could be more upside to the market here, but we are utilizing the top end of the recent range to reduce long exposure and leg in on shorts (dependent on the client’s personal views). First technical resistance for tomorrows session comes in from....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 & Technicals (April)
April lean hogs were under pressure today, closing .60 lower at 72.85, trading in a range of 1.35. The market broke below first support at 72.80 which led to accelerated selling pressure before finding some buyers a hair above 72. The market finished the session right at the 100 day moving average which we will now have marked as a pivot point. If the market cannot achieve consecutive closes above this level, it is likely we see a push back towards the low end of the range which comes in 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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