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Livestock Roundup (3.7.18)

Published on: 23:46PM Mar 07, 2018

Cattle Commentary:  Outside markets stabilized today, shrugging off yesterday’s knee jerk reaction on the resignation of the Presidents Chief Economic Adviser.  Trade/tariff chatter continued to linger but there was an opening in the clouds into the stock market close when rumors circulated that there could be tariff exemptions for Canada and Mexico.  Today’s Fed Cattle Exchange sold 387 out of 474 head at 126, the remaining 87 were passed on at 126.  As mentioned yesterday, cash trade at 126 is enough to support but the bulls will need to see better than that to get a rally.  There are still asking prices hanging at 128; the bulk of last week’s trade came in 126-127.  Today marked the first day of the 5-day index roll for J (April) commodities.  Boxed beef continued to inch higher again today.

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 223.57/ 215.20

Change from prior day: /.22 / .00

Choice/Select spread: / 8.37

 

Cattle Technicals

 

Live Cattle (April)

Live cattle futures staged an inside day which is where prices trade within the previous days range.  First technical support from 121.90-122.45 held through the session which is a starting point, but the bulls need to see actual momentum not just support.  A break and close below support opens the door towards 120.00-120.25.  This pocket represents the 200-day moving average along with the 50% retracement (middle of the range) from the August lows to the November highs.  On the flip side, first technical resistance also held which we outlined as 123.40-123.80.  A breakout above opens the door to a run 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)

 

Yesterdays reversal and lower high set the table for weakness in todays session as the market failed to gain any significant ground above the 200-day moving average.  First resistance tomorrow comes in from 144.65-144.95.  The market has seemingly shifted over the past week which has the bulls feeling a little nervous going into the back half of the week.  First support for tomorrows session comes will come in from 142.75-143.50.  A break and close below will likely encourage those nervous bulls to temporarily throw in the towel which could open the door for a run at....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 rolled over hard through the morning but rallied just as hard through the afternoon session.  April lean hogs finished the session down .25 at 67.95, this after trading in a range of 1.90.  Today starts the first day of the 5-day index roll for J (April) commodities, June futures will start picking up in volume and will become the month of interest for us before long.  The chart resembles a technical graveyard over the past two months but today’s capitulation like trade could....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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