Livestock Roundup (5.1.18)

Published on: 22:26PM May 01, 2018

Last Trades:

 

LEM8: -.375 at 105.725, trading in a range of 2.575

LEQ8:  -.625 at 103.90, trading in a range of 1.90

GFK8: -2.55 at 137.625, trading in a range of 3.175

GFQ8: -2.775 at 143.425, trading in a range of 3.50

 

Cattle Commentary:  Cattle futures opened the day in a similar fashion to their Monday close.  The difference between Monday and today was that weakness was bought which should put the bulls in a good position for Wednesdays session.  Clients that we worked to reduce long exposure with on Monday were able to get back in at some great value levels today (see technicals below).  If you plan on being active in the market you have to be willing to trade the market you have, not the one you want.  There has yet to be any cash trade this week, but early talks are for steady to firm.  Last week’s cash trade wrapped up with 124 in the south and 126 in the north. Tomorrows Fed Cattle Exchange has 2,982 head offered.  We remain optimistic that the board and cash will work together to narrow the basis in the intermediate term. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 226.43 / 207.09

Change from prior day: / 2.01 / 2.30

Choice/Select spread: / 19.34

 

Tech Talk

 

Live Cattle (June)

 

In yesterday’s report we mentioned that follow through pressure could “accelerate things towards 103.95-104.00.”  Though this support pocket was seemingly out of reach, that is what we got.  This pocket represented the gap from April 20th.  The price action off of the gap fill should be extremely encouraging for the bull camp.  If this holds it will....

 

Feeder Cattle (August)

 

August feeder cattle continued to wipe away last weeks gains.  The market filled a gap on the chart that was left from April 20th, but unlike live cattle futures, feeders kept on going.  The market is approaching significant support which we have defined as 142.55-143.00.  This pocket represents the 200-day moving average, a key retracement level, and a minor trendline.  If this support is able to hold the it would continue the trend of higher lows since we bottomed in early April; this would likely encourage some new buyers to step into the market.  On the resistance side of things, the market needs to reclaim....

 

Lean Hog Commentary and Technicals (June)

 

June lean hogs managed to gain back some lost ground, finishing the day up 1.45 at 74.50, this after trading in a range of 1.30 (gap on the open).  We remain cautiously optimistic on price action in the intermediate term, the close back above 74 should set up for a continuation rally.  There’s not a lot of significant resistance until....

 

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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.