Livestock Roundup (6.19.18)
Jun 19, 2018
LEQ8: 1.275 at 106.45, trading in a range of 3.335
LEV8: 1.20 at 108.775, trading in a range of 3.125
GFQ8: .775 at 149.75, trading in a range of 2.975
GFU8: .875 at 150.00, trading in a range of 2.825
Cattle Commentary: Tariff talk dominated the news wires for the last 24 hours as President Trump announced that they would be looking to identify $200 billion in Chinese imports for an additional 10% tariff. This news hit soybeans the hardest with other grains following suit in what was pure panic and, in some cases, forced liquidation; ultimately this led to a “follow the money flow” type of trading day. Once grains started to find their footing, other ag markets including cattle started to follow suit. We will continue to keep an eye on any new developments as outside market volatility could affect near term prices. Tomorrows Fed Cattle Exchange has 2,125 head offered, any sales could set the tone for the week; we are looking for cash to come in near steady with last week but might not get anything significant until later in the week.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 219.70 / 202.30
Change from prior day: / (1.01) / (1.90)
Choice/Select spread: / 17.40
Live Cattle (August)
August live cattle started the session under pressure as money flow in the ag sector was heavily skewed to the sell side. The market found support near the 50-day moving average which we defined as support in yesterday’s report, that came in at 103.50. Grain markets found footing and money flow started reversing which brought buyers back into commodities. Futures are testing first resistance, we defined this in yesterday’s report as 106.225-106.95. A break above opens the door to....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 found support against the yesterday’s lows and the 100-day moving average which came in from 146.875-146.60 respectively. The inability to breakdown and the change in order flow encouraged momentum traders to step into the market after early morning panic subsided. The market found strength into the afternoon, closing at the highest price since the beginning of March. The past two sessions have been more constructive than we would have thought. This is the top end of the range, but the recent price action has us wary of a potential breakout to....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 gave up some ground today, essentially erasing the gains from Monday. July futures finished the session down 1.85 at 81.875, trading in a range of 1.425. Trade concerns (more so with Mexico) after a nice two-week rally put a lid on things today as longs looked to take some risk off the table. First technical support for tomorrows session.....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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