LEM8: 1.40 at 106.575, trading in a range of 2.325
LEQ8: .575at 104.675, trading in a range of 1.50
GFK8: .20 at 137.825, trading in a range of 2.125
GFQ8: .075 at 143.775, trading in a range of 2.225
Cattle Commentary: Cattle futures started the session on softer ground, taking out yesterday’s lows and testing our first support which we listed as 104.50 in yesterday’s report (see technicals below). New news on the wires has been non-existent which has led to a choppy trade. Hopefully tomorrow’s Fed Cattle Exchange can stir up some activity (unlikely though) on the cash side of things; there are 2,456 head offered. The bulk of cash trade last week came in at 126 which is a hefty premium to the futures board. Because of that basis we remain optimistic that we will see cash and the board work together. With that said, the market has been this way for awhile now with not much budging.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 230.93 / 209.93
Change from prior day: / 1.79 / (1.27)
Choice/Select spread: / 21.00
Live Cattle (June)
It was a new day but much of the same story on the technical front, the market has now traded 106 at some point through 10 of the last 11 sessions. First support was tested but defended at 104.50, this support pocket runs down to 103.825. A break and close below this pocket will likely accelerate the selling and could push managed money to go net short. On the resistance side, 107.10-107.825 is the pocket the bulls need to get back out above to encourage another leg higher. The next pocket above here 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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