Daily Livestock Technicals and Fundamentals (8.13.18)
Aug 13, 2018
LEV8: -1.125 at 108.125, trading in a range of 1.20
LEZ8: -1.10 at 112.00, trading in a range of 1.075
GFU8: -1.025 at 148.50, trading in a range of 1.45
GFV8: -.475 at 149.00, trading in a range of 1.275
Cattle Commentary: Cattle futures started the week under pressure, with live cattle testing the support pocket we put in our “Weekend Ag Update”, that came in from 107.50-107.90 (see full technical breakdown below). Cash cattle last week week came in from 110-112.50 with the bulk coming in late at 111 in the South. There have been talks to start the week of 108 cash, this likely played into weakness in today’s session. You could spin that into a silver lining and suggest that at least the bad news is priced in early in the week. This week’s Fed Cattle Exchange has just 293 head listed for Wednesday.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 208.43 / 199.66
Change from prior day: / 1.82 / 1.89
Choice/Select spread: / 8.77
Live Cattle (October)
October live cattle were in retreat mode to start the week, testing our support pocket from 107.50-107.90. This pocket represents a key retracement on the year and the 100-day moving average. More importantly, this pocket also contains trend line support from May 17th, June 15th, July 11th, and today’s low. As far as value goes, this is the spot to look long; just be sure to manage risk if the market breaks down below. On the resistance side of things, the bulls need to reclaim....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (October)
It should be noted that we are moving out to October as volume in August starts to thin out. The market has been in consolidation mode, posting “inside days” the last three sessions (trading within the previous day’s range). We continue to believe the bears have an advantage here as we continue to monitor what appears to be a head and shoulders pattern which is a bearish formation. There is some support just below the market but a breakdown below there opens the door for 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)
October lean hogs finished the day the day up .525 at 51.70, trading in a range of 2.975. Believe it or not, today's wide range was actually an “inside day”, trading within the previous day’s range. The inability to retain strength is a caution sign, one that suggests that this is a relief rally (at least for the moment). The bulls need to achieve consecutive closes above....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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