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
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.
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