Livestock Roundup (2.20.18)
Feb 20, 2018
Cattle Commentary: Cattle futures looked a little lost today as it appeared the bulls and the bears were sitting on their hands, waiting for something to happen. Cash trade on Friday came in at 130 live and 205 dressed, these were both 4 higher than the previous weeks. April futures finished the session up .075 at 127.725, trading in a range of .75. March feeders ended the day up .25 at 149.975, trading in a range of 1.85. If you’ve been reading our commentary you know that we have had a bullish bias, but the lack of follow through in todays led us to be proactive in taking some risk off of the table (instead of hoping for something). Boxed beef made a nice leap today.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 215.92/ 210.40
Change from prior day: /3.35/ 2.97
Choice/Select spread: / 5.52
Live Cattle (April)
April live cattle futures finished the day near unchanged, trading in a relatively tight range; it’s almost as if some market participants had extended their long weekend. From the bull’s perspective, we would have liked to see the market use last weeks momentum to start the week off strong. We were not getting what we wanted from the market, so we decided to take a proactive approach. The inability to work higher led us to reduce some risk for clients who were looking to hedge and specs looking to short. We still like the long side but would welcome a pull back towards 124.875-125.44. A close below opens the door to long liquidation towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
March feeders traded both sides of unchanged as the bulls and bears continue Friday’s tug of war. Previous resistance is now first technical support, that comes in from 148.35-148.65. A break and close below this pocket leaves the door open for a pull back towards 146.45. The bulls are in control of the market but need to see follow through momentum this week to keep the ball in their court. First technical resistance comes in at 150.90-151.00 with more significant resistance coming in just above that from....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)
Lean hogs caught a nice bid today after finding and holding technical support on Fridays session. April futures finished the day up 1.175 at 69.325, trading in a range of 1.725. Technical resistance from 69.70-70.00 was tested but the bulls failed to get momentum out above which invited the sellers back in on the close. The bears are in control here, but we would not be surprised to see....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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