Livestock Roundup (3.6.18)
Mar 06, 2018
Cattle Commentary: The battle between higher beef prices and higher production continues with the later seemingly holding an edge right now. Cattle markets started the day on strong footing but gave up ground through the back half of the session. April fats finished the day down .425 at 122.80, trading in a range of 2.375. March feeders closed .725 lower at 144.425, trading in a range of 2.25 for the day. Early bids came in at 124 with offers starting at 128; there was talk of some cash trade in Texas at 126, this is steady with last weeks trade. Caution flags that were raised over the past two weeks continue to linger as the market fails to hold a rally and could lead to a technical breakdown (see technicals below). Outside markets are seeing volatility in the open of the overnight session due to Gary Cohn resigning, the top economic adviser to the President. If we hadn’t already gotten tax reform this would be a bigger concern, this looks like a bit of a knee jerk reaction at first sight. Over the last month we have been painting the outside markets as a sell first ask questions later type of market in our Morning Express. Boxed beef managed to inch higher yet again today.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 223.35/ 215.20
Change from prior day: /.12 / .36
Choice/Select spread: / 8.15
Live Cattle (April)
Cattle futures started the day with a bang on follow through momentum from yesterdays close, printing their highest price of the month at 124.825. The rest of the trading session was like a slow-motion train wreck for bulls as momentum faded and long liquidation followed. The tides have certainly started to shift over the last two weeks as the bulls have failed to hold water with every attempt at a rally. If the market breaks and closes back below technical support, we could see accelerated selling pressure press prices down towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels
Feeder Cattle (March)
March feeders made a run towards first resistance which we had outlined as 146.45-146.85, but the bulls were not able to get anything going above here to stage a breakout. The inability to work higher invited the sellers back into the market and pressed prices back below the 200-day moving average. Recent price action favors the bears in the near term; first technical support tomorrow 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 (April)
Lean hog futures made a run at filling the gap from 69.50-69.80 but ran out of steam to get the job done. Futures faded through the day with the April contract closing .625 lower at 68.15, this after trading in a range of 1.20. First technical support for tomorrows session 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
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