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Livestock Roundup (3.14.18)

Published on: 23:05PM Mar 14, 2018

Cattle Commentary:  The market worked higher today on the back of a firm cash trade yesterday.  The bulk of cash came in at 127 with 128 making an appearance.  Today’s cash trade echoed just that, 127 on the Fed Cattle Exchange (113/113 head) and 128 noted in Nebraska after the close; dressed was noted from 205-207.  The boards inability to hang on to early gains should be a bit of a caution flag for the bull camp as it signals supply concerns growing looking into the future (hence the name futures market); the silver lining in the near term is the firm demand early in the week from packers.  Some are suggesting that we could see cash continue higher into next week.  Outside markets struggled to gain ground in the afternoon session which may have also been a bit of a headwind for the market.  Boxed beef inched higher on the day.

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 224.11/ 217.01

Change from prior day: / .38/ .26

Choice/Select spread: / 7.10

 

Cattle Technicals

 

Live Cattle (April)

 

April live cattle gaped higher on the open after reports of the firm cash trade yesterday afternoon.  The market ran out above technical resistance from 123.55-123.80 which represented recent highs along with the 50 and 100 day moving average.  The markets momentum fizzled out and drifted back below those points, closing the session right near where we capped opened.  The reversal off the highs is not at all what the bulls wanted or needed to see.  Price action suggests to us that the market wants to close the gap from yesterday.  First technical support tomorrow we have coming in from 122.20-122.55.  A close below this pocket opens the door for....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

Feeder Cattle (April)

 

Feeder cattle were technically sound today as futures rallied up to our resistance pocket from 144.75-145.00, as mentioned in previous reports, this pocket represents the 200-day moving average along with the 50% retracement from the August lows to the November highs, both of which were previously significant support indicators.  The reversal off of this level again sets the table for the bear camp in the near term as it keeps the trend of lower highs and lower lows intact.  A break and close back below 141.025-141.75 is a green light for the market to break down to....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 hog futures traded lower in today’s session following yesterday’s bearish reversal, finishing the session in the middle of our support pocket that we outlined as 66.425-66.875 in yesterdays report.  April lean hogs finished the session down .875 at 66.85 trading in a range of 1.10.  The bears remain in control, but the market is nearing a point where the risks may start out weighing the reward (this does not mean buy).  We are looking 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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