Livestock Roundup (6.18.18)
Jun 18, 2018
LEQ8: .875 at 105.65, trading in a range of 1.70
LEV8: .95 at 107.975, trading in a range of 1.675
GFQ8: 1.075 at 149.05, trading in a range of 2.40
GFU8: .925 at 149.20 trading in a range of 2.40
Cattle Commentary: Cattle futures finished last weeks trade with a bid, on the idea that we would see a higher cash trade after the close on Friday like we did the previous week. That higher cash never came and that caused some uncertainty on the open with futures trading nearly 1.00 lower in the first half an hour of trade. The selling subsided from there and it ended up being a relatively tame session. We will continue to keep an eye on cash development this week, if we were playing pin the tale on the donkey the starting point would be 113. After the close on Friday we will get the updated Cattle on Feed report, we will have estimates for you by mid-week.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 220.71 / 204.20
Change from prior day: / (.88) / 1.47
Choice/Select spread: / 16.51
Live Cattle (August)
Just two sessions ago live cattle were treading at the bottom end of the range, now we are lingering near the top of that range, which means we have been working with clients to reduce long exposure and look to the short side. As mentioned in previous reports, we are looking for the market to settle into more of a range, this would present a lot of great opportunities for both the bulls and the bears. First technical resistance for tomorrow’s session comes in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (August)
Feeder cattle had an impressive session, marking their highest close since the beginning of March. As with the fat cattle, this is an area where we don’t mind taking longs off the table and even looking to the short side, especially if you were able to capitalize buy support near 143 last week. If the bulls can achieve a conviction close above the top end of the range, we could see the market extend its rally towards the highs of the year which come in at 155.975. On the flip side, a failure to breakout could lead to some long liquidation. First support that the bulls want to defend on a closing basis comes in from....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 (July)
Lean hogs have been on a tear for the past two weeks after finding support on the bottom end of the range. July futures finished the session up 1.85, posting the highest close since the end of February. Higher lows and higher highs have given the bulls a clear advantage here. Technical and fundamental strength could help extend this rally with the next target coming in at the contract highs of 85.575. On the support side of things, there is not a lot until....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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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.