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Livestock Roundup (5.8.18)

Published on: 22:40PM May 08, 2018

Last Trades:

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

 

Tech Talk

 

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.

 

Feeder Cattle (August)

 

August feeder cattle started the day under immense pressure, trading as low as 141.675, only to finish the session slightly off the highs at 143.775.  Despite the impressive finish off of the lows, we are skeptical about upside potential in the market.  Last week we marked lower highs and today’s price action marked lower lows, another lower high mark would all but confirm the end to the recent rally.  First resistance for tomorrows session 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.

 

Lean Hog Commentary and Technicals (June)

 

Lean hog futures gaped higher this morning and rode that momentum through the day and into the close.  June futures finished the day up 2.225 at 76.40, this after trading in a range of 1.75 (gap).  This close was just above our resistance pocket which we had outlined as 76.10-76.25, this will now act as support on a closing basis.  If the bulls can defend this pocket through the week, we could see an extension towards....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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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.