LEZ8: -.425 at 116.825, trading in a range of 1.20
LEG8: -.475 at 122.325, trading in a range of 1.15
GFF9: -1.625 at 148.20, trading in a range of 2.50
GFH9: -1.375 at 146.60, trading in a range of 2.225
Cattle Commentary: It was Groundhog Day, for the 13th consecutive day we tagged 117.35 in December live cattle. We continue to get questions regarding the lack of rally in futures with such a firm cash trade last week. We continue to answer that much of that was already priced in, and the board is still at a premium. The bulk of last week’s cash trade came in from 114-115, and judging by the October futures, we can expect something similar this week. The first two days of the week have been quiet in terms of cash, tomorrow’s Fed Cattle Exchange has 229 head offered. The outside market volatility has been a headwind to the market, which means if they stabilize it may help cattle futures move back towards the top of the range (see full technical breakdown below).
PM Boxed Beef / Choice / Select
Current Cutout Values: / 215.28 / 202.88
Change from prior day: / 1.52 / 1.77
Choice/Select spread: / 12.40
Live Cattle (December)
December live cattle traded lower for the second straight day for the first time in a week and a half, all while managing to trade 117.35 for the 13th consecutive session. As mentioned in yesterday’s report, this market environment is one where expectations should be tempered. It’s easy to have big ideas of 124 futures, lofty expectations get you married to a trade, this can lead to a lot of pain in the long run. Or at the very least a lot of missed opportunities....
December futures finished the day up .10 at 58.95, trading in a range of 1.175, pressing up against those October 1st highs but fell short of a breakout. The resistance pocket we laid out yesterday....
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