Livestock Roundup (6.11.18)

Published on: 22:52PM Jun 11, 2018

Last Trades:

LEQ8: -1.375 at 104.40, trading in a range of 2.90

LEV8:  -1.075 at 107.125, trading in a range of 2.50

GFQ8: -1.325 at 145.95, trading in a range of 3.10

GFU8: -1.05 at 147.375 trading in a range of 2.925


Cattle Commentary:  Last weeks cash trade caught a bid at the end of the week, coming in 4-5 higher from the previous week.  This lifted the spirit for bulls into the weekend, but when we opened up this morning those hopes were somewhat deflated.  The market traded both sides of unchanged before rolling over into the afternoon session.  We were on RFD-TV this morning discussing the markets and mentioned the fact that we couldn’t rally on bullish news should be a caution flag for bulls.  We believe that is what ended up happening, the inability to achieve a technical breakout on bullish fundamentals led to some squaring up which eventually fed on itself as the volume picked up.    

PM Boxed Beef / Choice / Select

Current Cutout Values: / 225.13 / 202.80

Change from prior day: / (1.08) / (.38)

Choice/Select spread: / 22.33


Tech Talk


Live Cattle (August)


Live cattle futures tested the top end of the range from late April and early May but failed to gain ground to encourage additional momentum.  The inability to breakout led to profit taking from those who were able to buy at better prices in the back half of last weeks trade.  There is some support coming in from 103.30-103.65, this pocket represents the 50-day moving average and trendline support from the May 18th lows.  If you are bearish and short, this is where you would want to consider reducing.  If you’re bullish this is where you might consider dipping your toes in.  Ultimately, we believe the market will settle into a more defined range, so we are looking to be more patient for a test of 102.20-102.40. 


Resistance: 105.20-105.35***, 106.50-106.675**, 107.40-107.80****

Support: 102.20-102.40***,100.80-101.225**, 97.625-98.20****


Feeder Cattle (August)


August feeder cattle ping-ponged between some key technical levels, finishing the session near the low end of the day’s range.  First support tomorrow comes in from 145.30-145.50, this pocket represents today’s lows and the 50% retracement (middle of the range) from this years trading range.  A break and close below this pocket will likely encourage additional pressure and take prices down towards....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 (July)


Lean hog futures rallied hard in the back half of last week’s trade, leading to a firmer open to start this week’s trade.  That momentum ran out of gas after failing to attract new buyers at prices not seen since the beginning of March.  The inability to hold ground led to long liquidation into the afternoon session.  July futures finished the session down 1.125 at 79.60, trading in a range of 3.00.  We would not be surprised to see this pressure continue into tomorrows session as we expect the market to settle into a more defined range.  First support tomorrow 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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