Cattle Commentary: Cattle futures had a choppy session but finished the session near the low end of the days range as end market participants were tying up loose ends at the end of the month. April fats finished the session down .925 at 123.325, trading in a range of 2.25 on the day. March feeders finished the session down 1.90 at 144.65, trading in a range of 2.60 on the day. Cash trade came in from 126-127, this was 1-2 lower from last week and steady to higher with what we saw earlier in the week. Today’s Fed Cattle Exchange yielded a whopping 80 out of 365 head at 126. Perma bulls are digging in deep to find affirmation while perma bears are getting excited. At the end of the day, this is exactly where we were last month; and on a risk reward basis, we continue to believe this area offers value when we look at the chart and remove the emotions (see technicals below). Boxed beef managed to grind higher yet again today.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 221.03 / 215.10
Change from prior day: /.51 / .31
Choice/Select spread: / 5.93
Live Cattle (April)
Prices worked lower on the open following yesterdays bearish close, some support came into the market midday on the back of some cash trade but optimism quickly faded and the buying dried up. The market failed to take out yesterday’s highs and resistance which we have outlined as 125.45-125.65, this was a serious concern as we approached the noon hour. We continue to believe that the last line of defense for bulls to defend comes in at 122.55. A break and close below that opens the door to additional 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.
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