Livestock Roundup (3.27.18)

Published on: 23:22PM Mar 27, 2018

 Last Trades:


LEJ8: -.25 at 115.425, trading in a range of 1.575

LEM8: -.025 at 105.30, trading in a range of 1.775

GFJ8: .975 at 135.475, trading in a range of 2.40

GFK8: 1.00 at 136.55, trading in a range of 2.45


Cattle Commentary:  Cattle futures were set to finish the day on a positive note after a relatively mute afternoon session, that changed right at 12:59.  The last trade at 12:58 for June live cattle was at 106.30; within the next minute we traded as low as 104.95.  The volume on this last-minute trade was 3,465.  This was likely an end of quarter and end of month squaring, algos recognized it instantly and liquidity evaporated, much like pulling a chair out from someone.  This is not how markets should work, but it’s the world we live in with huge funds and algos having power to influence short term pricing.  Notable cash trade this week has been at 121 in Kansas, outside of that there has not been much else worth mentioning.  Tomorrows Fed Cattle Exchange has 409 listed; not that it’s ever notable but it does circulate as a talking point. 


PM Boxed Beef / Choice / Select

Current Cutout Values: / 222.36 / 214.24

Change from prior day: / (.17) / (1.22)

Choice/Select spread: / 8.12


Cattle Technicals


Live Cattle (June)


Futures looked like they were finally set for a relief rally but that turned on a dime in the final minutes of trade.  If you take away the trade from 12:59-1:00pm, it was very constructive; it will be interesting to see how this might change sentiment on tomorrows open.  First significant support remains at 103.65-104.75, a break and close below will accelerate the selling with the potential for sub 100.00.  On the resistance side, the bulls need to see a 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.


Feeder Cattle (May)


The market squeaked out an inside day, where prices stay within the previous days range.  Technically today’s trade was constructive, that is until the last minute.  The close off the highs and tail on the candle is bearish in our minds.  If we do see today’s close carry over into weakness tomorrow, we would expect to see....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 (June)


It’s the same story just another day in lean hogs; June futures finished the day down .275 at 73.825, trading in a range of 1.025.  First support continues to come in from 73.15-73.30; the way things are going we would not be surprised to see this give way on the next test.  Below this pocket there is not a lot of support until....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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