Livestock Roundup (7.2.18)
Jul 02, 2018
Attention: Tomorrow is an abbreviated session, closing at 12:15pm cst.
LEQ8: .525 at 107.25, trading in a range of 1.975
LEV8: .25 at 110.275, trading in a range of 1.575
GFQ8: .875 at 152.20, trading in a range of 1.825
GFU8: 1.325 at 152.275, trading in a range of 1.975
Cattle Commentary: Cattle futures started the new week, month, and quarter with some follow through buying after Friday’s limit up move. Those gains subsided just before the 9:30am time frame, trading both sides of unchanged for the remainder of the day. The inability to maintain strong momentum through the entirety of the session is a bit of a caution flag for us in the very near term. With the July 4th holiday right around the corner, we would not be surprised to see volume dry up for the remainder of the week (baring any dramatic headlines). Due to the holiday, the Fed Cattle Exchange will be canceled this week, and resume its regular schedule going forward. On the cash side of things, we are not expecting much o happen until the back half of the week.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 211.88 / 198.77
Change from prior day: / (.08) / (.20)
Choice/Select spread: / 13.11
Live Cattle (August)
August live cattle futures got out of the gate hard on the open, but lost steam within the first hour of trade. Prices eclipsed 107.775 for the first time since March, this level is significant, representing the 50% retracement from the November highs to the April lows. If the bulls can achieve a conviction close above here, we would expect to see the market run towards....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 their highest price since the beginning of March, leaving the door open for a potential retest of the February highs at 155.975. The chart has been constructive, marking higher lows and higher highs consistently since the middle of May. Previous resistance now becomes first support, we see that at....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)
Lean hog futures traded in an outside day (trading outside the previous days highs and lows), which is impressive considering the range of Friday’s trade. August futures finished today’s session down 2.025 at 74.425, trading in a range of 3.35. This seemed to be a bit of a delayed reaction from last weeks hogs and pigs report where we saw record supply for the second half of the year. Perhaps end of the quarter positioning is they reason for the delayed reaction. On the technical side of things, the market tested our 3-star pocket from 76.90-77.25 but could not attract any new buyers at the point (the high was 77.175). The market also hit 4-star support which we have listed as 73.275-74.00; not very often do you get a test of significant support and resistance levels on the first day. Due to the velocity of the move lower, we are now looking to readjust significant support down to....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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