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Livestock Roundup (3.19.18)

Published on: 00:09AM Mar 20, 2018

Cattle Commentary:  Cattle futures drifted lower through the whole session, a continuation of much of last week’s trade.  Outside markets saw a similar trade which didn’t help the cause.  Early calls for cash this week are steady with last week.  Keep in mind that we do have a Cattle on Feed report out on Friday afternoon.  Early estimates are for On Feed at 108.1, Placements 103.4, and Marketings at 101; this would be the largest On Feed number dating back to 2008.  Friday’s Commitment of Traders report showed non-commercial traders sold 8,399 contracts, putting their net long at 104,924 contracts.  April live cattle finished the session down .80 at 120.45, trading in a range of 1.675.  We will begin shifting attention towards June as it will be the leader in terms of volume; June fats finished down 1.425 at 110.325, trading in a range of 2.20.  April feeders finished the day down 1.95 at 138.25, trading in a range of 2.85.  Boxed beef was mixed on the day.

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 224.87/ 217.29

Change from prior day: / (.72)/ .43

Choice/Select spread: / 7.58

 

Cattle Technicals

 

Live Cattle (April)

 

April live cattle tested our last line of defense and have so far held.  We have been discussing this level for the past several weeks, and had outlined it coming in from 120.15-120.25.  This pocket represents the 200-day moving average as well as the 50% retracement from the August lows to the November highs.  A break and close below opens the door to long liquidation from funds, the next line in the sand for support doesn’t come in until....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)

 

April feeders took some heat today and achieved our target which we had outlined as 137.75 in last weeks report.  Now that we are down at this level and the RSI (relative strength index) is in oversold territory, we feel this is an opportunity for shorts to reduce and longs to look at the buy side.  On the resistance side of things, there is not a lot in the way until....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 not only reached the August lows of 65.05, but they also breached them with some serious conviction as longs through in the towel and piled in on the sell side.  April futures finished the day down 2.475 at 62.975, trading in a range of 2.275.  We will start shifting the focus to....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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