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Daily Livestock Technicals and Fundamentals (9.11.18)

Published on: 22:06PM Sep 11, 2018

Last Trades:

 

LEV8: -.80 at 109.35, trading in a range of 1.05

LEZ8: -.375 at 114.05, trading in a range of .70

GFV8: -.125 at 152.55, trading in a range of .875

GFX8: -.375 at 152.50, trading in a range of .90

 

Cattle Commentary:  Cattle futures softened up today on the inability to spur new buying interest yesterday at the top end of the range.  Cash trade has yet to develop this week, but expectations are for prices to be steady to firm.  The show list is smaller by about 25,000 head this week.  Tomorrow’s Fed Cattle Exchange has 444 head offered, nothing close to significant, but it could put the line in the sand.  Our thoughts on the markets have not changed over the last several weeks.  The market has been range bound for the better part of the last two months and we will continue to play it that way until we see fundamentals or technicals shift. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 206.07 / 198.31

Change from prior day: / (.23) / (.62)

Choice/Select spread: / 7.76

 

Tech Talk

 

Live Cattle (October)

 

October live cattle are in an interesting spot, resting right near the 50% retracement for the years range (middle of the range) and our pivot pocket which we have defined as 109.50-109.70.  The market is starting to form a wedge, posting higher lows and lower highs, this typically leads to a bigger directional move.  Whether that be a breakout, or a breakdown has yet to be determined, but it is likely we will see a bigger move within the next week.  A breakout of the wedge 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.

 

Feeder Cattle (October)

 

October live cattle traded near unchanged as traders waited for more conviction on either side of the market.  The chart is relatively neutral here, but this is the top end of the range, from a risk/reward perspective this gives the bears an advantage.  If the market takes out yesterday’s highs and closes above there it would give the bulls a clear advantage for the back half of the week.  A break and close back below the 50-day moving average at 151.45 could spur some long liquidation towards....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 lean hogs gave back some ground today, finishing the session down 1.35 at 54.60, trading in a range of 2.55.  This continues to be an extremely volatile market which is why we have been treading lightly and looking out to long dated call options.  Long call options give us exposure while keeping emotions at ease during the intraday/intraweek swings.  The ace in the hold for the bulls continues to be....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.