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Livestock Roundup (3.15.18)

Published on: 23:09PM Mar 15, 2018

Cattle Commentary:  Cattle futures filled the gap and tried to get legs but couldn’t get the job done.  April fats finished the session down 1.10 at 121.90, trading in a range of 2.70.  April feeders finished the session down 1.95 at 140.775, trading in a range of 3.15.  We saw cash trade at 128.50 after the close, this may help put a band aid on the recent chart damage.  The fact that the board can’t hang with cash is a concern for what could be to come; some of that obviously being priced in already.  Boxed beef was mixed today. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 224.99/ 216.31

Change from prior day: / .88/ (.70)

Choice/Select spread: / 8.68

 

Cattle Technicals

 

Live Cattle (April)

 

Summary of live cattle over the last week:  Chop fest.  They found a bid after testing support on the open but the buying quickly dried up after failing to spark anything above our resistance pocket from 123.55-123.80 (today’s high was 123.825).  This pocket represents the 50 and 100 day moving average and has acted as solid resistance for the last week.  The failure ultimately led to long liquidation and a test towards the bottom end of the range going back to March 8th.  We have seen a rather choppy trade recently as the bulls and the bears continue their tug of war match.  The failure to gain ground above resistance despite increased cash gives the tip of the cap to the bear camp.  The last line of defense comes in from....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 closed at their lowest price since we posted an intermediate term low on December 22nd.  We continue to believe there is room for this market to work down to 137.75 as the trend of lower lows and lower highs has kept the bears in control of the chart. The RSI is at 31 which is the most oversold since we posted that low on December 22nd.  First resistance for tomorrows session 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 and Technicals (April)

 

April hogs continued their slide lower, approaching the August 30th low of 65.05 we have been targeting for the past several weeks.  As mentioned in yesterdays report, the risk is starting to shift towards the buy side in this contract.  The RSI (relative strength index is at 33.19, this is one of the more oversold conditions we have seen in the last year.  If you want to be long hogs, we would recommend....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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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.

 

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