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Was that the top for cattle?

Published on: 21:14PM Mar 12, 2019

Livestock Roundup

 

March 12, 2019

 
 

Last Trades

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

 

Tech Talk

 

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 Oliver@BlueLineFutures.com.

 

Feeder Cattle (April)

 

Yesterday we stated: “Smack dab in the middle of that range, we don’t have a whole lot of conviction on either side here.  IF we worked closer to 144, we would be willing buyers on the first test.  On the flipside, resistance comes in near 148.”.  Prices managed to work towards that 144 level, holding our more specific 3-star support pocket from 143.50-143.75.  As mentioned above, this is a buy on the first test, but....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

Lean Hogs (April)

 

Lean hogs continued their V shape recovery today with April futures finishing up .75 at 63.60, marking the 8th close higher in the last 9 sessions.  The next meaningful resistance pocket comes in from....Get our full report (outlook/market bias/ technical levels) emailed to you every day, click HERE or email Oliver@BlueLineFutures.com.

 

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.