Livestock Roundup (5.24.18)

Published on: 20:50PM May 24, 2018

Last Trades:


LEM8: -1.00 at 104.45, trading in a range of 1.475

LEQ8:  -.875 at 101.925, trading in a range of 1.525

GFQ8: .15 at 143.50, trading in a range of 2.00

GFU8: -.225 at 143.075, trading in a range of 1.90


Cattle Commentary:  Cattle futures opened frim but started losing ground shortly after and finished the day near the session lows.  There has been talk about some cash cattle trade between 109-110 but doesn’t seem to be substantial.  Cash has been dropping rapidly which has taken pressure off the futures market to rally hard.  This is part of the reason we have turned our tone towards the bearish side.  The North Korean/US summit has been canceled this put some fear premium back into the market.  This was hyped up pretty well and was an over promise, underdeliver scenario; will trade negotiations with China be the same?  We should get more information on that front with Commerce Secretary Ross visiting China next week.  Tomorrow’s Cattle on Feed report is due out at 11 am cst.  Estimates are for on feed to be 104.9%, placements at 90.9%, and marketing’s at 105.9%.


PM Boxed Beef / Choice / Select

Current Cutout Values: / 229.00 / 204.93

Change from prior day: / (1.08) / (.11)

Choice/Select spread: / 24.07


Levels to Watch


Live Cattle (June)


Resistance: 106.05-106.15***, 108.10-109.025****

Support: 103.90-104.125***, 102.55-102.60***, 101.20-101.65**


Feeder Cattle (August)


Resistance: 145.00-145.50****, 146.80**, 147.95-148.70***

Support: 142.80-143.00***, 139.675-140.10**, 137.00-137.80**


Lean Hogs (June)


Resistance: 75.35-76.45**, 76.20-76.725****

Support: 73.775-74.00***, 72.20-72.75**, 70.25-70.90****




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