Livestock Roundup (2.8.18)
Feb 09, 2018
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.
Feeder Cattle (March)
March feeders took out any stops that were lingering just above the highs from the previous two sessions. The price action was originally constructive, but the big money failed to confirm the move and the buying turned into selling. The market is making a run at our first support level 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.
Lean Hog Commentary & Technicals (April)
April lean hogs posted their lowest price since the end of September but managed to halt the bleeding (for now) as it appears we could see a breather from funds long liquidation. April futures finished the day up .10 at 69.325, trading in a range of .90. We were on RFD-TV this afternoon discussing the bulls need to see the market close back above....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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