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Daily Livestock Technicals & Fundamentals (10.17.18)

Published on: 20:42PM Oct 17, 2018

Last Trades:

LEZ8: -.20 at 117.575, trading in a range of .925

LEG8: -.175 at 121.65, trading in a range of .825

GFX8: -.725 at 153.50, trading in a range of 1.375

GFF8: -.975 at 148.975, trading in a range of 1.60

 

 

Cattle Commentary:  Cattle futures traded both sides of unchanged today as some market participants square things up ahead of 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 cattle trade this week has been light, but steady with last week, so nothing to write home about there.  Today’s Fed Cattle Exchange was a skunk, selling 0/1,103.  Over the last week we have been talking/writing about the market establishing a new trading range, 116-120 (roughly).  If you were able to buy the low end of the range last week or Monday, you may consider reducing risk as prices linger in “no mans land”. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 204.56 / 191.19

Change from prior day: / (.05) / (1.36)

Choice/Select spread: / 13.37

 

Tech Talk

 

 

Live Cattle (December)

 

December cattle futures worked on both sides of unchanged today, shaking out some weak shorts and longs as we continue to linger near the middle of our intermediate term range.  We continue to see technical support coming in from 115.775-116.00, this pocket 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)

 

In yesterday’s report we cautioned that the Tuesday’s price action was “worrisome for the bulls”.  That proved to be true today as the market continued to breakdown technically.  Previous support now becomes first resistance, that comes in from 153.90-154.45, this pocket represents the 50-day moving average, a key retracement on the year, along with previously important price points.  The bears now have the advantage until we see consecutive closes back above resistance.  On the support side of things, there is not a lot of significant levels 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)

 

Lean hogs rolled over hard today, a continuation from Tuesday’s reversal off of significant technical resistance.  December futures finished the day down 2.25 at 54.625, trading in a range of 2.20 (gap lower).  This pull back has prices testing significant support, a pocket that we have defined as 53.85-54.675.  This is a wider pocket than we would typically want, but there is a lot of significance in it, it contains the 50- and 100-day moving average, the 50% retracement from the February highs to the august lows, along with previously important price points.  This is a MUST hold pocket for the bulls on a closing basis.  From the risk/reward perspective, this....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.