Daily Livestock Fundamentals & Technicals
Aug 01, 2018
LEV8: 1.35 at 110.65, trading in a range of 1.825
LEZ8: 1.45 at 114.425, trading in a range of 1.80
GFQ8: 2.90 at 152.225, trading in a range of 3.325
GFU8: 2.70 at 152.275, trading in a range of 3.375
Cattle Commentary: Cattle futures spent 99% of the day in positive territory, with the last few minutes of trade being the cherry on top. Today’s Fed Cattle Exchange sold 851/1060 head from 110.00-110.25. There were also reports of outside cash trade near 109.75 too. Despite being softer from last week we saw the market rally. In yesterday’s report we stated: “Today we change that bias to the bull side as multiple technical indicators come into play”. We got pretty lucky with that call as we were willing to buy October down to 108, the reversal in the grains was certainly a nice gift. We expect that volatility to continue which will likely continue to play a role in livestock prices. Boxed beef was lower on the day.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 203.75 / 197.58
Change from prior day: / (.52) / (.80)
Choice/Select spread: / 6.17
Live Cattle (October)
October cattle erased losses from the first two trading days this week after holding our technical support pocket from 108.75-109.175. If that pocket holds, it will mark higher lows which would have us looking for higher highs to follow. With that said there are a few barriers before higher highs. The 200-day moving average comes in at 110.875 (also today’s high). The market has not been able to achieve consecutive closes above this indicator since March, we view that as significant. The top end of the recent range has been....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Feeder Cattle (August)
August feeder cattle held the 50-day average perfectly the last two sessions which helped offer technical support. The last time we saw consecutive closes below the 50-day moving average was in the middle of May. This week’s lows also mark higher lows (so long as they can hold), which could take us to higher highs. We continue to be optimistic about prices and are keeping an eye out for a retest of the February 20th highs which come in at 155.975. If the market does reverse and closes below....Please sign up 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)
Lean hogs looked like they were going to do it, they really looked like they were going to have a meaningful close higher….then they reverted back to their old way. October lean hogs finished the day down .05 at 50.675, trading in a range of 2.30. Both support and resistance were tested today. We had support listed down to 49.90, with resistance coming in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
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