Daily Livestock Fundamentals & Technicals (8.22.18)
Aug 22, 2018
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LEV8: -1.275 at 109.20, trading in a range of 1.70
LEZ8: -1.175 at 113.50, trading in a range of 1.575
GFU8: -1.725 at 149.275, trading in a range of 2.20
GFV8: -2.225 at 148.70, trading in a range of 2.775
Cattle Commentary: We have been turning more bearish over the past several sessions and finally caught a nice break on today’s open. Cattle futures rolled over on the open which shouldn’t come as much of a surprise after yesterday’s session. Cash bids today were coming in anywhere from 109-109.50. Today’s Fed Cattle Exchange sold 280 head at 109.50, the other pen of 79 was passed on with a tantalizing bid of 90. The monthly Cattle on Feed report will be released Friday afternoon. Average expectations are as follow: On Feed 104.5%, Placements 106.3%, Marketed 104.7%. Cold storage this afternoon came in at 485.007 million pounds.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 214.04 / 203.97
Change from prior day: / .47 / (.11)
Choice/Select spread: / 10.07
Live Cattle (October)
The market broke down below our key support pocket near 109.55 which opened the door for a “whoosh” lower. Prices traded as low as 108.30 but regained ground to close near the 50-day moving average at 109.20. Today’s low was right on with trendline support from the lows on May 18th, June 15th, July 11th, and August 13th. There is additional support down to....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Feeder Cattle (October)
Feeder cattle futures broke down today which opened the door for accelerated selling pressure, pressing prices towards the low end of the range which we have had defined as 147.45-147.85. This pocket represents the 100-day moving average along with previously important price points. A break and close below here takes us to....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Lean Hog Commentary and Technicals (October)
This afternoon’s Cold Storage report showed pork at 548.053 million pounds and bellies at 38.542 million pounds. Lean hogs continued their regression today with October futures finishing 2.70 lower at 53.525, trading in a range of 1.90. This was right on a key Fibonacci retracement and just above our support pocket 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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