Daily Livestock Technicals & Fundamentals (10.16.18)

Published on: 21:01PM Oct 16, 2018

Last Trades:


LEZ8: -.375 at 117.60, trading in a range of .775

LEG8: -.025 at 121.675, trading in a range of .55

GFX8: -1.125 at 154.10, trading in a range of 1.45

GFF8: -.625 at 149.90, trading in a range of 1.30


Cattle Commentary:  Cattle futures traded in a tight range as market participants gear up for new news to hit the wire and prices linger near the middle of our range.  Cash trade will be important this week (as always), but the big-ticket item is Friday’s Cattle on Feed report.  Early estimates are for on feed to come in at 106.4%, placements 100.5%, and marketing’s at 96.5%.  Cash trade has been slow to start the week with reports of steady to slightly lower coming in.  Tomorrow’s Fed Cattle Exchange has 1,103 offered, not a significant amount, but something to put a line in the sand. 


PM Boxed Beef / Choice / Select

Current Cutout Values: / 204.61 / 192.55

Change from prior day: / (.19) / .66

Choice/Select spread: / 12.06


Tech Talk


Live Cattle (December)


December live cattle traded in a tight range today as volatility subsides from yesterday’s trade.  Due to the tight ranging trade, our technical outlook remains intact from yesterday’s report.  Over the last week we have been writing and talking about the potential of a new, higher trading range.  In our daily commentary, on the radio, and TV interviews we have defined that as 116-120 (give or take a bit).  115.725-116.00 is the more precise support pocket we are looking at, this represents the 50-day moving average as well as the original breakout point from September 14th (previous resistance is now support).  On the resistance side of things, we are looking at....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


Feeder Cattle (November)

November feeder cattle finished towards the low end of today’s range, something that is worrisome for the bulls still standing.  The inability to find follow through from yesterday’s afternoon session was enough for additional long liquidation in today’s session.  Key technical support was tested and held today, we have defined that as 153.65-154.00.  A break and close below here could open the flood gates to accelerated selling pressure.  The next significant support pocket doesn’t come in until....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


Lean Hogs (December)


December lean hogs started the day on firm footing but gave that up into the close.  Futures finished today’s session up .10 at 56.85, trading in a range of 1.675.  The market made another attempt at our 4-star resistance pocket from 58.00-58.65 but failed to attract new buyers.  In yesterday’s report we touched on conflicting technicals at play.  We have a golden cross, where the 50-day moving average crosses above the 100 day, as you can guess by the name this is bullish.  On the bearish side we have the beginning of what could be a head and shoulders formation.  Over the past month and a half, we have been mostly range bound, we will continue to play....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.