LEM8: -2.375 at 102.90, trading in a range of 2.85
LEQ8: -2.200 at 102.95, trading in a range of 2.55
GFK8: -2.30 at 138.375, trading in a range of 2.65
GFQ8: -2.40 at 143.65, trading in a range of 2.925
Cattle Commentary: They buy the close sell the open crowd got pinched today as the open offered little to no opportunity to exit at better prices. In the previous three sessions we saw higher opens which peaked at or before 9:30am cst. The fact that we didn’t get that initial burst was a caution flag from the get go, which led to some position squaring ahead of tomorrow’s Cattle on Feed report. We would not be surprised to see this price action carry over into tomorrow’s session; but ultimately see it as an opportunity to look long for the short term. The “easy trade” is to be long the market, the problem is it’s never easy; the market can stay irrational longer than you can remain solvent. Estimates for tomorrow’s cattle on feed report are: Cattle on Feed to come in at 107.5%, Placements at 90.6%, and Marketing’s at 96.1%. Cash trade picked up today with the bulk of it coming in from 121-122. There was talk of bids in Nebraska coming in at 123 but nothing done at this time. Boxed beef was lower on the day.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 211.34 / 198.48
Change from prior day: / (.30) / (.09)
Choice/Select spread: / 12.86
Live Cattle (June)
June live cattle never got the chance to knock on the door of 106 again today, had it happened I would venture to guess the last trade would have been dramatically different. The inability to get that momentum to and above 106 led to some long liquidation and position squaring ahead of tomorrow afternoons Cattle on Feed report. Significant support going forward comes in from 101.20-101.85, if this pocket gives way on a closing basis we would expect to see 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.
Feeder Cattle (May)
Feeder cattle broke down below support from 139.425-139.95 which accelerated things into the afternoon. There is not a lot of solid support below this level until 135.75-136.325. This pocket represents previously important price levels as well as a key Fibonacci retracement from the November highs to the April lows. On the flip side of things, previous support now becomes resistance at 139.425-139.95. If the market can reclaim ground above here on a closing basis we could see another push towards....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 finished the day down .175 at 78.35, trading in a range of 1.60 for the day. Despite trading lower and closing lower, price action looked constructive and bodes well for higher prices in the near term. The early dip tried to spark selling interest but was met by buyers which propped prices back above that pivotal 78 level. The next resistance pocket 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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