Livestock Roundup (2.28.18)
Feb 28, 2018
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.
Feeder Cattle (March)
Feeders finished the session at their lowest price in a month on the back of a failure to hold ground above our pivot point at 146.45, this will be resistance going forward. The market made a run towards our 4-star support today which we have defined as....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)
In yesterday’s report we mentioned being 69.70 being a crucial support level for the bulls to defend, the bears never gave it a chance with the market gaping lower at 69.40. April futures finished the day down 2.575 at 67.375, trading in a range of 2.375. The gap lower accelerated the selling and pressed prices below our next support pocket which we outlined as....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Sign up for 1 or all 5 of our daily Blue Line Express commodity reports!
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.