What's next for the livestock markets?
Jan 29, 2018
Cattle Commentary: Cattle futures finished the session mostly higher, though well off of the highs for fats and feeders. April live cattle finished the session up .275 at 124.90, trading in a range of 1.325. March feeder cattle finished the session up .225 at 146.95, trading in a range of 3.325. Friday afternoon we got some new news across the wires in the form of cash trade and the Cattle on Feed report. The bulk of cash trade was reported at 127 and 200 dressed, this was up 4 and 5 respectively. Majority of market participants we spoke with were expecting to see 126. Fridays Cattle on Feed report showed the following:
Cattle on Feed: 108
Range of Estimates: 107.2-108.1
Range of Estimates: 93.3-100.3
Average Estimates: 96.9
Range of Estimate: 97.9-100.3
Average Estimate: 98.6
This afternoons boxed beef prices were up slightly.
PM Boxed Beef Choice Select
Current Cutout Values: 206.83 201.83
Change from prior day: .06 .51
Choice/Select spread: 5.00
Live Cattle (April)
April live cattle futures finished gaped higher to start the week, marking the high print in the opening minutes as price action fizzled out for the remainder of the day. The overall price action for the session was neutral but we continue to believe there is opportunity at the top end of the range to consider selling, whether that be reducing long exposure or legging in on shorts. If the market fails to break out above resistance in the coming sessions, it is likely that we see long liquidation take prices back towards first support which comes in from....Please sign up for a Free Trial to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeder cattle saw some volatility on the open, as we saw a “surprise” gap higher with prices testing our “last line of defense” from 149.40-150.00. The market was not able to hold water at those levels and that led to some pressure for the remainder of the day. If that market fails to gain traction here in the first half of the week, we could see selling pressure come back into the market and press us towards first significant support which we have marked as....Please sign up for a Free Trial to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary & Technicals (April)
April lean hogs finished today’s session down .50 at 73.30, trading in a range of .90. Supply side fundamentals continue to lend hand to keeping a lid on a significant rally. Technical resistance from 76.225-76.40 held last week and will continue to be the significant pocket to keep an eye on. On the support side, the market is making a run towards the 100-day moving average which comes in at 72.80. A break and conviction close below opens the door to accelerated selling pressure which could press prices towards....Please sign up for a Free Trial to view our entire technical outlook and proprietary bias and levels.
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