LEV8: .15 at 111.075, trading in a range of 1.05
LEZ8: .325 at 114.70, trading in a range of 1.10
GFQ8: 1.00 at 150.85, trading in a range of 2.10
GFU8: 1.425 at 150.15, trading in a range of 3.05
Cattle Commentary: Outside of the first and last 10 minutes today, the cattle trade was a lot like watching grass grow. There has not been a lot of new news on the wires and from the technical perspective, the market mimics a stick in the mud. Today’s Fed Cattle Exchange saw some 112 bids on 344 of the 464 head offered, but those were eventually passed on. With bids firming up through mid-week, we could see futures hold some water and potentially catch a bid into the back half of the week with the anticipation for higher cash. August live cattle futures are in delivery, so volume is light, but they don’t be seem to be buying into the higher cash theme, the finished the session down .275 at 109.80. Boxed beef inched up on the day.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 205.73 / 198.86
Change from prior day: / .24 / .35
Choice/Select spread: / 6.87
Live Cattle (October)
Live cattle tried to make a run below yesterday’s lows, taking them out by .05. The inability to breakdown below those lows which also happens to be trendline support, invited buyers back into the market. The market rallied and reclaimed the 200-day moving average for the second consecutive session, a level we have as our “pivot point”. The market looks constructive technically but appears to be running out of gas. 112.15-112.50 continues to be a big barrier, a breakout above here opens the door for....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Feeder Cattle (August)
Feeder cattle managed to hold technical support again, we have defined that as 149.60-149.925, this pocket represents a key retracement and the 200-day moving average. This will continue to be an extremely important level going forward, a breakdown with consecutive closes below could lead to a “whoosh” lower. We derive this through multiple indicators, one of those is the “head and shoulders” formation. If you look on the chart you can see....Please sign up 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)
Hogs accelerated their grind lower today with October futures finishing the session down 1.425 at 48.55, trading in a range of 1.60. As far as the general consensus in the market, not much has changed. Supply concerns and aggressive funds continue to be a wall too high for the bulls to overcome. The trend is your friend until the end when it bends, and the trend of lower highs and lower lows has been very clear. Only consecutive closes back above 52.424-50.475 will reverse the tide. In uncharted territory, finding technical support continues to be a fools errand. For those who want to be long, we recommend....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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