LEJ9: -2.65 at 126.35, trading in a range of 3.075
LEM9: -1.75 at 118.50, trading in a range of 2.65
GFH9: -1.00 at 141.30, trading in a range of 1.625
GFJ9: -1.725 at 144.25, trading in a range of 2.325
Cattle Commentary: In yesterday’s report we talked about the funds length in cattle futures, stating that “This is a lot of length for the funds, leaving risk open to long liquidation.”. That is exactly what happened today, admittedly more aggressively than we would have thought. Today was more about money flow than a shift in fundamentals. With that said, the shift in money flow could influence fundamentals (cash). There have been talks of some cash coming in from 127-128, steady to softer than what we’ve seen recently. Tomorrow’s Fed Cattle Exchange has 755 head offered.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 228.22 / 230.35
Change from prior day: / .86 / .72
Choice/Select spread: / 7.87
Live Cattle (April)
In yesterday’s report we stated: “With the funds having good length here, we have a hard time seeing them getting significantly more aggressive. We continue to believe that there will be opportunity on both sides of the market but favor the sell side here to start the week. First support this week comes in from 128.10-128.50, a close below here could be the spark to trigger fund selling.”. That break below trendline support was the straw that broke the back, leaving the door open for a continuation towards....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email [email protected]
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