Livestock Roundup (3.28.18)

Published on: 23:14PM Mar 28, 2018

Last Trades:

 

LEJ8: .55 at 115.975, trading in a range of 1.60

LEM8: .25 at 105.50, trading in a range of 1.925

GFJ8: 2.425 at 137.775, trading in a range of 3.10

GFK8: 2.125 at 136.35, trading in a range of 2.80

 

Cattle Commentary:  Cattle futures found footing early in the session and managed to hold it through the close which is a positive sign.  The rally seemed a bit sluggish which is a bit of a caution sign as we head into the last trading day of the week, month, and quarter.  This could add to volatility as funds may do some additional house cleaning.  It is very evident that long liquidation from funds has been a common theme, we will get an updated look at that in the Commitment of Traders report.  Cash trade has been all over the board so far this week with the bulk of it coming in around 121. 

 

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)

 

June live cattle printed their lowest price since June and are continuing to hover just above support from 103.65-104.075.  The path of least resistance has been lower for the better part of the last month and there is no sign that that trend is set to turn.  With that said, the market is deeply oversold with the RSI (relative strength index) at 23; these oversold conditions could provide a relief rally.  Relief rallies are often sold into so bottom pickers should use caution.  If we do in fact see a short covering rally, we could see the market shake out weak shorts to and press prices back to....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)

 

Feeder cattle have caught a better bid off the recent lows than the fats, but is it sustainable?  The market chewed through our first resistance pocket but halted in the second and more significant one which 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.

 

Lean Hog Commentary and Technicals (June)

 

Lean hog futures caught a big bid today on short covering ahead of tomorrows Hog & Pigs report.  All Hogs is expected to come in near 103.1%, kept for breeding at 101.5%, and kept for market at 103.3%.  June futures finished the session up 2.60 at 76.625, trading in a range of 3.975.  This close was just above the first resistance pocket we referenced in yesterday’s report.  The next line in the sand 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.

 

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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.