Cattle Commentary: Cattle futures rolled over hard shortly after the open this morning, this was largely technical in our minds. As we mentioned in yesterday’s report, the lack of follow through on Tuesday put the buyers on the sideline and invited long liquidation. There was cash trade today, the bulk of it coming in at 128, this is 2 lower than the 130 we saw on Friday. There is a Cattle on Feed report out on Friday and estimates are starting to roll in. Estimates for On-Feed are coming in from 107-108.5%, Placements 99.6-100.1%, Marketing’s 105.5-106.1%. The outside markets have stabilized but today’s FOMC Minutes sparked some volatility, if that volatility starts to feed on itself we could see that spill over into cattle (just something to keep an eye on). Afternoon boxed beef was stronger yet again.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 217.37/ 211.92
Change from prior day: /1.45/ 1.52
Choice/Select spread: / 5.45
Live Cattle (April)
April live cattle opened on the softer side this morning and then accelerated lower to our first support pocket which we had outlined in yesterday’s report as 124.875-125.45. Our bias remains bullish and this pullback was very much welcomed as mentioned yesterday. We used today’s pullback to work with clients who reduced long exposure/started shorting yesterday. If the market makes another run at this pocket and closes below, we would not be surprised to see the market test our next support in from....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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