Cattle Commentary: Live cattle futures continued to slide lower today February futures surprisingly holding better than the April. We were in the camp that April would hold better with the funds rolling out of front month and into deferred months. This has not been the case which could mean some funds are just going to the sidelines. None the less, the roll is certainly a catalyst for price pressure. February live cattle closed -1.075 at 116.60, trading in a range of 1.975 on the day. April fats were down 1.20 at 118.325, trading in a range of 1.90. There has been an active cash trade in the first half of the week, with the bulk of that coming in at 120. Today's Fed Cattle Exchange had 711 head offered, 401 of those were sold at 119. Dressed has been at 192. March feeder cattle have been holding better than the fats, they finished the session down .875 at 141.875, trading in a range of 2.725 on the session. Boxed beef was lower for the first time in what seems like a lifetime today.
PM Boxed Beef Choice Select
Current Cutout Values: 210.06 203.23
Change from prior day: (.43) (.46)
Choice/Select spread: 6.83
Live Cattle (February)
February live cattle poked their head up above resistance on the open but there was not much there, prices quickly turned lower and didn’t look back. Futures closed right at the bottom end of our support pocket listed in yesterdays report, that comes in from 116.60-116.775. If the bulls cannot hold this pocket on a closing basis, it opens the door for extended pressure down towards....
*April live cattle futures have support from...
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Feeder Cattle (March)
If you’ve been reading our daily reports this week you know that our target of 143.50 was achieved today. The market managed to trade up to 144.425 but failed to sustain momentum into the afternoon. The break down back below 143.50 led to accelerated selling pressure which could continue into tomorrow’s session. The 200-day moving average offers first support at 140.765, we have traded below but have never closed below the 200-day moving average for this contract. However, the more significant pocket of support now comes in from....Please sign up for a Free Trial at Blue Line Express to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary & Technicals
February lean hogs finished the day down .70, trading in a range of 2.10 on the day. The market again stuck its head above yesterdays high to see what was there but there wasn’t much which led to some long liquidation. Gap higher moves ahead of the open with no new news should be taken with a grain of salt in the livestock complex. Higher cash trade has been helping liner back at the contract highs, how much more room to the upside is still too be determined. We continue to feel that there is value to the short side at these levels but be prepared to manage risk if we can’t get the breakdown we are looking for. Our first target on the short side is...Please sign up for a Free Trial at Blue Line Express to view our entire technical outlook and proprietary bias and levels.
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