Daily Livestock Fundamentals & Technicals (8.9.18)
Aug 09, 2018
LEV8: -1.675 at 109.325, trading in a range of 2.375
LEZ8: -1.375 at 113.15, trading in a range of 2.025
GFQ8: -1.325 at 149.325, trading in a range of 2.475
GFU8: -.575 at 149.175, trading in a range of 2.65
PM Boxed Beef / Choice / Select
Current Cutout Values: / 206.06 / 198.09
Change from prior day: / .33 / (.77)
Choice/Select spread: / 7.97
Cattle Commentary: Cattle futures rolled over today as traders and other market participants wait for cash trade to develop. Most bids remain near 112 with offers upwards of 116. The velocity of the moves in livestock today with little new news could be tied to the unwinding of long cattle/short hog spread, this will be something to keep an eye on in tomorrow’s session. We may have been a little premature on buying the pullback in fats today, but our underlying bias hasn’t changed today. On the feeder cattle side of things, the chart continues to look troubling. (see video below for full technical breakdown).
Live Cattle (October)
Resistance: 110.85**, 112.15-112.50***, 114.075-114.75***
Support: 108.60-108.75**, 107.65-107.90****
Feeder Cattle (August)
Resistance: 150.875-151.00**, 152.95-153.00**
Support: 147.95-148.45****, 145.50-146.20***
Lean Hog Commentary and Technicals (October)
Resistance: 52.425-52.625***, 55.675-55.975****, 57.575-58.275***
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