How high can cattle go?

Published on: 23:28PM Jan 08, 2019

Livestock Roundup

 

January 8, 2019

 
 

LEG9: 2.25 at 125.45, trading in a range of 2.60

LEJ8: 1.30 at 126.375, trading in a range of 2.00

GFF9: 1.55 at 147.55, trading in a range of 3.20

GFH9: 1.50 at 145.40 trading in a range of 3.425

 

Cattle Commentary: Cattle futures shocked the world (joking) and surged to new contract highs today, shortly after some emotionally based analysts were calling for a technical collapse Friday. Though we were suggesting buying the dip on Friday and Monday morning, we did not participate in the full rally today as we were working with clients to reduce risk. For those thinking the market has gotten too far ahead of itself and wanting to look at the short side, consider the April contract.. Some analysts are suggesting that the start of the Goldman roll was the reason for today’s rally, I would say that they don’t fully understand how the roll works. It is actually the opposite, sell front month and buy the next one out. There hasn’t been much of any cash trade to speak of this week, offers are resting at 125. Tomorrow’s Fed Cattle Exchange has 571 head offered.

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 213.98 / 207.26

Change from prior day: / (.30) / (.95)

Choice/Select spread: / 6.72

 

 

Tech Talk

 

Live Cattle (February)

 

Feb futures have now....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

 

Feeder Cattle (March)

 

Feeder cattle continued their move higher today, testing the....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

 

Lean Hogs (April)

 

On paper it was a quiet day for April lean hogs, finishing the day near unchanged. In reality it was fairly eventful, bringing a little bit of something for both the bulls and the bears. The market....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

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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.