Daily Livestock Technicals & Fundamentals (10.30.18)

Published on: 20:53PM Oct 30, 2018

Livestock Roundup

 

October 30, 2018

 
 

Last Trades:

 

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

 

Tech Talk

 

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....

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Feeder Cattle (January)

 

As mentioned yesterday, the bears remain king of the hill.  Yesterday’s lackluster trade led to futures rolling over today, trading at their lowest price since the first week of September....

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Lean Hogs (December)

 

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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-If you have questions about our services or would like to discuss the markets in more depth, please feel free to email Oliver@BlueLineFutures.com, or call/text 312-837-3938.

 

 

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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.