Livestock Roundup (7.18.18)
Jul 18, 2018
LEQ8: 2.675 at 109.10, trading in a range of 2.80
LEV8: 2.25 at 110.75, trading in a range of 2.425
GFQ8: 3.275 at 154.55, trading in a range of 3.75
GFU8: 3.15 at 154.85, trading in a range of 3.425
Cattle Commentary: Cattle futures brushed off yesterday’s lack of follow through and blew through technical resistance which we had listed as 107.775, opening the door for a test of the top end of our next pocket which we had listed as 109.075 in yesterday’s report. Today’s Fed Cattle Exchange sold 142 out of 428 head at 112, 177 were passed on at 111. We reduced long exposure a little prematurely but that’s ok, the market will be here tomorrow. We have been working with clients on the short side, as mentioned in previous reports we are using the December contract for that positioning. Estimates for Friday’s Cattle on Feed report are as follows: 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.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 204.80 / 197.09
Change from prior day: / .41 / .23
Choice/Select spread: / 7.71
Live Cattle (August)
For the second time this week, august live cattle finished just a stone throw away from limit up, trading to their highest price since March 19th. Today’s price action marked higher highs, this after holding higher lows last week. The market closed the session near the 200-day moving average at 109.05. The next line in the sand 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.
Feeder Cattle (August)
Feeder cattle continue to be extremely constructive, trading in a near perfect trend of higher highs and higher lows since the low in the middle of May. We continue to believe this market will make a retest of the February 20th highs at 155.975 (just a stones throw away now). The RSI is at 64.11, not technically overbought, but nearing a level where we have seen the market stall out at. The market could retreat 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 (August)
It’s the same story, just another day. August lean hogs finished today’s session down .40 at 67.50, trading in a range of 1.125. We have been waving caution flags for the last week as this market continues to roll over and make new lows on new lows. There’s an old saying around here: “the only thing you get from picking bottoms is stinky fingers”. From a trader’s perspective, we continue to feel....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Sign up for a free trial of 1 or all 5 of our daily Blue Line Express commodity reports!
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.