What's in store for cattle futures?
Feb 22, 2018
Cattle Commentary: Cattle futures couldn’t get any mojo going today as buyers have seemingly decided to sit on their hands ahead of tomorrow afternoons Cattle on Feed report; also known as the Cattle on Fade report. Estimates for On-Feed are coming in from 107-108.5%, Placements 99.6-100.1%, Marketing’s 105.5-106.1%. We have seen “bearish” reports produce rallies in the past so take things with a grain of salt. There was additional cash trade today, the bulk of it coming in at 128, this is 2 lower than the 130 we saw late last week. This recent pull back has offered the opportunity for market participants to be a little more proactive. From our stance, we are using it as an opportunity to leg back into the long side that we were working to reduce earlier in the week. April fats finished the session down .925 at 125.30, trading in a range of 1.20. March feeders finished down .675 at 145.975, trading in a range of 1.10. Boxed beef was higher yet again today.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 218.40 / 212.06
Change from prior day: /1.03 / .14
Choice/Select spread: / 6.34
Live Cattle (April)
Live cattle staged an inside day (trading within the previous day strange) which really isn’t saying much considering Wednesdays volatility. Tehcnical support continues to hold from 124.875-125.45, but the inability to “snap back” is a caution flag for us going into Friday and ahead of the Cattle on Feed (aka Cattle on Fade) Report. If the bulls cannot defend this pocket, we could see long liquidation press prices towards....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeders worked a little bit lower as the bulls could not hold water above 146.45. This level represents the 50% retracement (middle of the range) from the August lows to the November highs. There is minor support at 145.40, but the more significant pocket comes....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary and Technicals (April)
Lean hogs shocked the world with an impressive rally today. April futures finished the session up 1.575 at 71.475, trading in a range of 2.075 on the day. Significant resistance we had listed as 71.15-71.35, the bulls MUST defend this level to encourage additionally buyers to step in. If they can hold support, the market could work back towards....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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