Livestock Roundup (3.27.18)
Mar 27, 2018
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
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.
Sign up for a free trial of 1 or all 5 of our daily Blue Line Express commodity reports!
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.