Cattle Commentary: Cattle futures finished last week limit up but failed to see that translate into firm momentum today. The inability to work higher following a limit up should always raise a caution flag but there is no denying last week’s price action was trend changing, see the full technical breakdown below. The market had been pricing in a higher cash trade and a higher cash trade is what we got, the bulk of last weeks cash came in near 111 live and 175 dressed. We would not be surprised to see a choppy trade this week as participants digest new cash developments and square things up ahead of Friday’s Cattle on Feed report, we will have estimates out by midweek.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 206.04 / 197.38
Change from prior day: / 1.77 / .91
Choice/Select spread: / 8.66
Live Cattle (October)
October live cattle futures tried to find their legs but failed to retain Friday’s momentum, starting the week in a relatively tight range. Last week’s breakout above the wedge was the greenlight the bulls were looking for, giving them clear control of the market once again. If the bulls are able to chew through and close above 114.075-114.75, we could see a swift move higher with contract highs of 117.60 being the next significant level. On the flip side, previous resistance now becomes first support, we see that coming in from....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
October lean hogs finished the day up .275 at 56.50, trading in a range of 2.575. Deferreds didn’t fare as well as October, December and February finished 1.15 and 1.00 lower, respectively. The market held a bid last week as fears lingered on the approaching hurricane, the big concern was around North Carolina because they represent 12.5% of the nation’s hog herd. The premium kept in the market last week as the hurricane approached the east coast was removed in today’s session. Volatility appears to be subsiding which is breathing life back into the technicals. Resistance from 56.90-57.85 is significant, a breakout move above hear will likely provide another leg higher. On the support side of things, there isn’t a lot until....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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