Cattle Commentary: Volatility picked up in today’s session though you might not know it looking at closing prices. April fats finished the day down .125 at 123.85, trading in a range of 2.325. March feeders finished the day down .925 at 147.375, trading in a range of 3.20. We have not seen much on the cash side of things outside of a few on yesterdays the Fed Cattle Exchange at 126. If we can’t get any cash trade going into the close, we could see that encourage shorts to cover as we head into the weekend. We continue to be cautiously optimistic in the futures market but continue to wait patiently for a little better price; price is what you pay, value is what you get. Outside market volatility again picked up at the end of the day which needs to be monitored as it will spill over into the commodity space due to margins, sentiment, etc. USDA boxed beef spread narrowed today with choice down and select up.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 208.53/ 203.79
Change from prior day: / (.84) / .65
Choice/Select spread: / 4.74
Live Cattle (April)
Today's price action should cause a little bit of concern for the bulls. The market rallied to trip stops above technical resistance and the highs from the previous two sessions. The bull camp could not maintain a bid which led to a bleed lower through the rest of the day. Though we are friendly on the market at the first test of 122.55-122.95, this type of price action is a caution flag. If the market cannot hold support on the first test, we would not be surprised to see the market work down to the next line in the sand which comes in at....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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.