Constructive charts for cattle and hogs

Published on: 20:48PM Sep 26, 2018

Last Trades:


LEV8: 1.35 at 113.70, trading in a range of 1.875

LEZ8: 1.55 at 118.75, trading in a range of 1.95

GFV8: 1.75 at 158.225, trading in a range of 2.275

GFX8: 1.75 at 158.175, trading in a range of 2.35


Cattle Commentary:  Cattle futures got the move higher that technicians were looking for today with December futures marking their highest price in seven months, see the full technical break down below in our “Tech Talk” section.  As mentioned in yesterday’s report, we remain optimistic on prices with a constructive chart and fundamentals relatively neutral.  October live cattle may find it harder to follow the trend as the basis widens.  There has been some light cash trade this week, coming in near 110.50 which is mostly steady with last week’s trade.  Today’s Fed Cattle Exchange had no sales out of 424 offered. 


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)


Over the last two weeks we have been talking about the “bull flag” set up, below is an illustration.  We got the breakout move on September 14th and then consolidated into the flag pattern.  From a technician’s standpoint, the next thing to look for is another “flagpole” following the consolidation.  Today is the beginning of that flagpole which could carry over into tomorrows session.  This price action coincides with the contract highs which makes the next two days even more significant....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)


Feeder cattle managed to gain traction alongside the live cattle today, following a similar “bull flag” pattern to the live cattle.  We remain optimistic on prices but would encourage some profit taking/risk reduction here near the contract highs.  Significant support comes in from 155.525-155.70.  This pocket represents the February and July highs, the breakout from September 14th and this week’s lows.  So long as the bulls can defend this on a closing basis they remain in control.  On the resistance side of things, recent highs of 159.40 is the line in the sand.  Above that mark is uncharged territory, so finding meaningful levels becomes....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)


December lean hogs gave up some ground today after failing to breakout above key technical resistance.  December futures finished the session down .65 at 57.10, trading in a range of 1.375.  The bulls still have clear control of the chart here and have a bit of their own “bull flag” forming (see illustration in the live cattle section).  We have been consolidating over the past week which has technicians believing we could see a bigger move here in the near future.  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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