Livestock Roundup (6.13.18)
Jun 13, 2018
LEQ8: -.45 at 103.85, trading in a range of 1.15
LEV8: -.575 at 106.775, trading in a range of .975
GFQ8: -.175 at 145.625, trading in a range of 1.30
GFU8: -.125 at 146.70 trading in a range of 1.275
Cattle Commentary: Cattle futures finished today’s session little changed after trading in a relatively narrow range. New news is hard to come by so far this week which has some market participants sitting on their hands. Today’s Fed Cattle Exchange yielded zero sales on 596 head with 100 and 112 being passed on. We will look for a clearer picture to develop on the cash front over the coming days. Bids are resting at 112 with asking prices near 118, shoot the gap and you have a steady trade with last week. There are several analysts out there calling for more extreme moves in both directions, we continue to be in the camp that we will see the market settle into a more defined range. Boxed beef was lower for the day.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 223.90/ 202.30
Change from prior day: / (1.02) / (1.09)
Choice/Select spread: / 21.60
Live Cattle (August)
Fat cattle futures traded in their tightest range in a week as prices linger in the middle of our risk range and the RSI (relative strength index) reflects that with a reading of 50.80. In other words, we are remaining patient to sell higher prices or buy lower prices. On the support side of things, we feel 102.20-102.40 offers tremendous value, this pocket represents a key retracement on the year and the bottom end of the recent range. On the resistance side of things, we would like to sell the first test of the top end of the range which we have defined as....
Feeder Cattle (August)
August feeder cattle futures posted an inside day, trading within the previous days range. The market tripped below 145.50 but managed to close above, this level represents the middle of the range for the year and could be a pivot point to round out the week. A break and close below opens the door for a run closer to....
Lean Hog Commentary and Technicals (July)
Lean hogs continued their momentum today with the July contract finishing the day up 1.35 at 82.80, trading in a range of 1.55. As mentioned in yesterday’s report, the reversal off of support has given the bulls a near term edge which could lead to a test of the contract highs of 85.75. With that said, the bulls need to chew through a resistance pocket from....
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