Livestock Roundup (5.22.18)
May 22, 2018
LEM8: .175 at 105.10, trading in a range of 1.10
LEQ8: .30 at 100.925, trading in a range of 1.05
GFQ8: .40 at 140.90, trading in a range of 1.375
GFU8: .35 at 141.025, trading in a range of 1.25
Cattle Commentary: Cattle futures were subdued today as the market waited for any kind of new news to come across the wires. By the time of the closing bell cattle futures were little changed, an underwhelming performance on the back of yesterdays session where we tested the limits. With fundamentals falling back and technicals remaining bearish, we have changed our tone and are slightly more bearish at this point. This afternoons cold storage report came in at 471.545 million pounds. Attention will now turn to cash development and the Cattle on Feed report Friday. Early indications are for cash to continue their retreat. Early estimates are for on feed to be 104.9%, placements at 90.9%, and marketing’s at 105.9%; remember that this report will be released during trading hours. Boxed beef prices were lower for the day.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 229.35 / 205.86
Change from prior day: / (1.47) / (1.66)
Choice/Select spread: / 23.49
Live Cattle (June)
With today’s relatively tight range and price stuck in between our support and resistance, not much has changed. The first line in the sand for resistance comes in at 105.40, but the more significant pocket rests from 106.05-106.15. If the bulls can achieve a conviction close above this pocket, perhaps we see an extension towards that 108.10-109.025 level. A failure to get that leg higher will invite the sellers back into the market. On the support side of things,....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (August)
August feeder cattle were relatively quiet today, posting an inside day (trading within the previous day’s range). First support at 139.95 was tested but managed to hold into the afternoon session. A break and close below this level would have changed the technical landscape. As of right now, the bears are still in control, posting lower highs and lower lows over the past month. A break and close below support opens the door for....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 struggled to get anything positive going today which was to be expected after yesterday’s session. June futures finished the day down .625 at 73.375, this after trading in a range of 1.025. Lower lows and lower highs have been the trend for the last two weeks which gives the bears a slight advantage. If the bulls cannot reclaim 74, we could see....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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