Livestock Roundup (7.17.18)
Jul 17, 2018
LEQ8: -.025 at 106.90, trading in a range of 1.475
LEV8: .175 at 108.825, trading in a range of 1.375
GFQ8: -.60 at 151.775, trading in a range of 2.30
GFU8: -.30 at 152.15, trading in a range of 2.125
Cattle Commentary: Cattle futures tried but failed again to take out our technical resistance pocket from 107.625-107.775. There has not much new news in the first two trading days of the week which has put the focus on technicals (see below) and perhaps some position squaring into Friday’s Cattle on Feed report. Estimates for on feed range from 102.7-105.8, the average being 104.1. Placement estimates range from 95.5-106.6, the average being 101.3. Marketings range from 98.6-106.7, the average being 100.8. Tomorrow’s Fed Cattle Exchange has 428 head offered, nothing significant but could put a visible line in the sand for the week.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 204.39 / 196.86
Change from prior day: / .63 / 1.19
Choice/Select spread: / 7.53
Live Cattle (August)
In yesterday’s report we mentioned we were working with clients in reducing long exposure and were working to sell December futures for clients who wanted to be short. We continued to do that today. The inability for august futures to get follow through after they pressed limit up yesterday should act as a caution flag at the very least. Resistance remains intact 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 posted an inside day, trading within the previous day’s price range. With that said, they still managed to mark higher lows which has continued to be a longer-term trend. Our first resistance pocket remains intact from 153.625-154.15, a breakout above this pocket takes us to the February 20th highs of 155.975. On the support side of things....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 (August)
We were waving the caution flag Friday suggesting that the relief rally was as pathetic as it gets, this has proven to be true as prices have continued to roll over. August futures finished today’s session down 1.15 at 68.05, trading in a range of 2.25. Lean hogs is exactly like corn and beans from last week, with prices in uncharted territory. Trying to find technical support becomes a fool’s errand, which is why remain neutral. We feel....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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