LEV8: -.125 at 111.875, trading in a range of .925
LEZ8: -.05 at 115.45, trading in a range of .85
GFQ8: -.75 at 152.10, trading in a range of 1.225
GFU8: -.95 at 152.075, trading in a range of 1.775
Cattle Commentary: With August live cattle officially in delivery mode, we are turning our attention to October and December live cattle. Cash cattle late Friday afternoon came in at 114 live and 180 dressed, this was 2-3 higher over the previous week and well above the light trade early in the week. You would think that this would put a pop in volatility, but it was a rather quiet day. The market had a hard time accelerating on the open despite the friendly headlines, a sign that Friday’s move higher on the board was likely front running higher cash. This is often a caution flag which could lead to long liquidation, but the bulls did a decent job in defending prices. Fat cattle continue to look friendly, but a pullback would be welcomed. Feeders have looked better than fats on the chart over the last two months, but it appears they are running out of gas as grains find footing.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 205.68 / 198.33
Change from prior day: / .93 / 1.24
Choice/Select spread: / 7.35
Live Cattle (October)
October live cattle traded in one of their tightest ranges in two months today as the bulls and the bears both sit on their hands against the top end of the recent range. Tomorrow will be a pivotal session in setting the tone for the week. If the bulls can achieve a true breakout above resistance, the market could really run. Previous resistance now becomes first support, we see that as 110.85-111.45, this pocket represents the 200-day moving average and a key retracement from the November highs to the April lows. A breakdown below here sparks....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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