Livestock Roundup (7.12.18)
Jul 12, 2018
LEQ8: 1.125 at 104.975, trading in a range of 1.90
LEV8: 1.35 at 107.60, trading in a range of 1.85
GFQ8: 1.35 at 150.75, trading in a range of 1.85
GFU8: 1.325 at 150.75, trading in a range of 1.525
Cattle Commentary: Headline risk from Tuesday afternoon was overdone and brushed aside in today’s session, for both cattle and the outside markets. Cattle futures saw a continuation from yesterday’s test and spring board off trendline support which we had outlined as 102.40-102.60. We have been outspoken about there being value down at those lower levels of support and believe that we could see the market work higher to round out the week. Outside of the technicals, we felt that cash could avoid rolling over this week which was another reason we like being on the buy-side in August and October live cattle. Cash bids have surfaced from 108-110 in the first half of the week, lower from last but nothing egregious.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 206.58 / 197.01
Change from prior day: / (.86) / (.13)
Choice/Select spread: / 9.57
Live Cattle (August)
Resistance: 105.35-105.65**, 107.75-108.45***
Support: 103.925**, 102.40-102.60***, 101.65**
Feeder Cattle (August)
Resistance: 151.90**, 153.05-154.15***, 155.50-155.975****
Support: 147.95-148.15**, 145.50-146.25***
Lean Hog Commentary and Technicals (August)
Resistance: 71.05**, 72.45***, 73.275-74.00**
Support: 68.50**, 64.00-64.50**
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