Livestock Roundup (2.12.18)
Feb 12, 2018
Cattle Commentary: Cattle futures found footing today with some help from the outside markets; tomorrow is a new day so don’t get too comfortable. April live cattle finished the session up 1.50 at 125.125, trading in a range of 2.025 on the day. March feeders finished 1.425 higher at 147.625, trading in a range of 3.125. We continue to be friendly on the market and think there could be a bigger move coming in the intermediate term. Funds have expanded their net long position according to Fridays Commitment of Traders report. Cash last week was light and came in at 126. This week’s cash development along with outside market activity will continue to be the headliners for this week’s trade. Boxed beef was very strong today.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 208.24/ 203.97
Change from prior day: / 1.72 / 1.23
Choice/Select spread: / 4.27
Live Cattle (April)
April live cattle saw follow through in today’s session on the back of Friday’s technical support from 122.40-123.15 holding on a closing basis. This pocket represents the 50 and 100 day moving average, a key retracement, and previously important price points. Though we believe there is more opportunity in the fat cattle, we were working with clients to reduce a small portion of exposure against the first test of resistance. The bulls have some work to do with first resistance at 125.45, this represents a key retracement from the August lows. If the bulls can achieve consecutive closes above resistance, then we would expect to see an extension towards contract highs. A failure to feed off of momentum over the next two sessions may lead to additional consolidation. The bulls are in control until we see a close back below our support pocket from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeder cattle were able to feed off of Friday’s late day momentum which has the bulls in a good spot. Higher lows and higher highs have the bulls in control right now, first resistance comes in at 148.35-148.65. A break and close above this pocket opens the door for a run back towards...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary and Technicals (April)
April lean hogs printed their lowest price since September, tripping stops just below three previous three sessions lows. April futures finished the day up 1.525 at 70.375, trading in a range of 2.175. The inability to breakdown on the stop hunt on such oversold conditions invited buyers back into the market. 69.70-70.00 is the pocket the bulls wanted to close above to stabilize the market and they achieved that by the close. This will be pivotal support, if this pocket gives way again we will likely see additional long liquidation come into the market with the potential to take us down to...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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