Daily Livestock Technicals and Fundamentals (8.29.18)
Aug 29, 2018
LEV8: .20 at 108.65, trading in a range of 1.20
LEZ8: .10 at 112.70, trading in a range of 1.125
GFU8: -.40 at 149.125, trading in a range of 1.15
GFV8: -.225 at 149.20, trading in a range of 1.45
Cattle Commentary: Cattle futures were as exciting as watching paint dry today, especially if you take out the first and last 10 minutes of the session. Cash trade has been relatively light this week with most bids resting from 106-107 and offers floating near 110-112. Today’s Fed Cattle Exchange sold 0/751 head. Several clients called to ask our opinion on our bias today, and there simply wasn’t any. There was zero conviction in either direction, so we will remain patient and let the market come to us. There is absolutely no reason to place a trade, just to trade. See the full technical breakdown below for the levels to keep an eye on in tomorrow’s session.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 212.68 / 203.55
Change from prior day: / .28 / (.73)
Choice/Select spread: / 9.13
Live Cattle (October)
Cattle chopped around today, offering little to the bulls or the bears. 4-star technical support held, a pocket that we have had defined as 107.65-108.30. The bulls do not want to revisit this pocket, another test would likely lead to a breakdown below. The next significant pocket doesn’t come in until 105.125-105.475. On the resistance side, we see....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)
The market held our first support pocket today which we had defined as 148.05-148.55, this pocket represents the 100 and 200 day moving average along with previously important price points. A break and close below will market lower highs and likely take us to lower lows. The objective for the bear camp would be 144.25. On the resistance side of things....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)
October cattle gave back more ground today with futures closing down .725 at 51.275, trading in a range of 2.05. As mentioned in previous reports we continue to be weary of front month futures but see there being a wild card in the deferred months. That wild card would be a bigger swine flu outbreak in China. Those deferred months have been hanging relatively firm. We continue to recommend options if you want to play this, it gives you exposure without having to worry about the day to day swings/margin. On the technical side of things....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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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.