Daily Cattle & Hog Technicals/Fundamentals
Aug 07, 2018
LEV8: -.60 at 110.95, trading in a range of 1.875
LEZ8: -.75 at 114.475, trading in a range of 1.70
GFQ8: -2.05 at 149.80, trading in a range of 3.425
GFU8: -3.275 at 148.575, trading in a range of 4.025
Cattle Commentary: Cattle futures took a turn today as some light cash trade at 112.50 has been reported, this is short of Friday afternoon’s 114 trade in the South. Most packer bids remain at 110 in the South and North while sellers dig in their heels. The market managed to find technical support to claw back some of the day’s losses into the close (see the full technical breakdown below) and some analysts are suggesting we could see the strong close carry over into tomorrow’s session. Tomorrows Fed Cattle Exchange has 464 head offered, never a significant number put another line in the sand for market participants.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 205.49 / 198.51
Change from prior day: / (.19) / .18
Choice/Select spread: / 6.98
Live Cattle (October)
October live cracked the 200-day moving average which opened the door for an acceleration towards what is a vague trendline support area. We say vague because there are multiple points to start the trendline from which gives you different levels. Specific levels can be debated (it’s a waste of time in this case), this is why we often refer to trading as an art, not a science. The part that can’t be debated is the fact that we have made higher highs and higher lows over the past 3 months, creating trend (line) support. On the resistance side of things, Friday’s spike high fell just shy of marking higher highs, if that resistance holds it could mean the bulls are running out of juice. Needless to say....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (August)
Feeder cattle broke down today but managed to find support at the 200-day moving average which came in at 148.45 today. Prices recovered some of the losses, closing in the middle of our first support pocket from 149.60-149.925. The chart is in a very interesting spot (isn’t it always). The bulls will tell you that there is a golden cross. This is when the 50-day moving average crosses the 200-day moving average. The bears will tell you that there is a potential head and shoulders (bearish formation). If you look on the chart you can see the left shoulder on July 5th-6th, the head on July 18th-19th, and the right shoulder on August 3rd-6th. That right shoulder also marked lower highs and was followed up by lower lows today. We have been in suggesting that feeders look a little more tired. If the market breaks down below 147.95-148.45, we will likely see a “whoosh” lower towards....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 (October)
It was Groundhog Day again; hogs caught a bid, then a gust of wind came and blew out the flame. October futures finished the day down .225 at 50.00, trading in a range of 1.35. Supply concerns and aggressive funds continue to be a wall to high for the bulls to overcome. Lower highs and lower lows keep the bears in control, only consecutive closes back above....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 a free trial of 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.