Did you buy the dip in cattle?

Published on: 23:31PM Jan 07, 2019

LEG9: 1.45 at 123.375, trading in a range of 1.975

LEJ8: 1.25 at 125.25, trading in a range of 1.875

GFF9: 1.025 at 145.925, trading in a range of 2.125

GFH9: 1.05 at 143.875 trading in a range of 2.425

 

Cattle Commentary:  cattle futures started the session on softer footing on follow through selling from the back half of last week.  As mentioned in our “Weekend Ag Update”, we were using this as a buying opportunity for both live cattle and feeder cattle (see technical section below).  The bulk of last week’s cash trade came in near 123 live and 195 dressed, steady with the previous week.  The bulls will want to see follow through in tomorrows session, a failure would likely trigger some long liquidation from today’s early morning buyers. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 214.28 / 208.21

Change from prior day: / (.23) / .55

Choice/Select spread: / 6.07

 

Tech Talk

 

Live Cattle (February)

 

In our Weekend Ag Update and again this morning on KDHN radio and RFD-TV we mentioned we liked using the early morning pullback as a buying opportunity.  We noted steady cash, coupled with significant support coming in from 120.90-121.50.  This pocket represents the 50 and 100 day moving average, along with a key Fibonacci retracement and several previously important price points.  The close was positive, but....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email [email protected]

 

Feeder Cattle (March)

 

Feeder cattle have been trading in a range for the better part of the last two months, for the March contract tat is 142-146 /-.  As mentioned in the Weekend Ag Update and on KDHN and RFD-TV this morning, the risk reward ratio favors the bulls at the low end of the range.  The market held that support well and worked back towards the 50% retracement at 144.60, this would....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email [email protected]

 

Lean Hogs (April)

 

Lean hogs have been the weak link for us recently as we work with clients to trade around a core long position (long and wrong at the moment).  April hogs finished the session down .40 at 66.35, trading in a range of 1.075.  The market is....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email [email protected]

 

 

Sign up for a FREE trial of 1 or all 4 of our daily commodity reports!

-Grains

-Livestock

-S&P, Gold, Oil

-Currencies

 

 

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.