Livestock Roundup Weekend Edition (1.14.18)
Jan 14, 2018
Cattle Commentary: Live cattle futures finished the week on a high note despite finishing the week in the red. We have been optimistic on fat cattle at these prices but have been suggesting looking out to April as funds roll from February futures to the deferreds. February live cattle finished Friday up .425 at 117.50 trimming some losses from the start of the week. For the week, Feb fats were down 1.75, trading in a range of 2.75. April live cattle finished Fridays session up .725 at 119.60; this put them down 1.225 on the week after trading in a range of 2.75. The bulk of the cash trade last week came in at 120 and 192 dressed. Early calls for this week are stead to 1 lower. Boxed beef prices were down again on Friday as some are suggesting the seasonal top is in.
PM Boxed Beef Choice Select
Current Cutout Values: 208.23 201.64
Change from prior day: (.84) (1.31)
Choice/Select spread: 6.59
Live Cattle (April)
Cattle futures firmed up on Friday after finding technical support on Thursday. We have been optimistic on prices at these levels, noting significant support from 117.80-117.90 in last week’s report. This pocket represents a key Fibonacci retracement from the August lows to the November highs, the 200-day moving average, and trendline support. The first line in the sand the bulls need to chew through comes in at 120.20 which is the 50% retracement (middle of the range) from the August lows to November highs; a conviction close above opens the door to an extension towards our target of....Please sign up for a Free Trial at Blue Line Futures in order to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeder cattle finished Fridays session up 1.375 at 142.75, trading in a range of 2.15. For the week feeders squeaked out a gain of .75 after trading in 4.30 range. Technical support at 139.85 held early in the week, this will continue to be a key level for bulls to defend. This represents a key retracement from the August lows to November highs. The 200-day moving average will offer first support this week, this is an indicator we have traded below but never close below for March futures and comes in at 141.175. Last week we mentioned 143.55 being our first target, if we see a conviction close above we expect to see the market make a run back towards...Please sign up for a Free Trial at Blue Line Futures in order to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary & Technicals
Lean hog futures were a little more volatile last week as the market made new contract highs at 73.675. February futures traded in a 2.95 range for the week. Futures finished Fridays session up .775, putting the net gain for the week at .40. As mentioned last week, we continue to feel the value is to the sell side against contract highs. Some traders are suggesting that we have put in a significant top, we won’t go that far as things can change quickly in the markets. First technical support comes in from 70.55-70.725, this is a new Fibonacci retracement level with Feb futures making new highs last week. Our first target from last week remains at....Please sign up for a Free Trial at Blue Line Futures in order to view our entire technical outlook and proprietary bias and levels.
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