Are Cattle Gearing Up For a Breakout?

Farm Journal logo


Blue Line Futures is a futures and commodities brokerage firm providing actionable proprietary research and a trade desk to speak with as much or as little as you want.

 

Live Cattle

Technicals (February – G)

February live cattle futures continued to stall out against technical resistance which keeps the theses of a rangebound trade intact for today’s trade.  With the consolidation, support and resistance levels remain intact. Net sales of beef for 2024 marketing year, which began January 1st, totaled 12,200 MT

Resistance:  172.40-172.65***, 174.75-175.25***

Pivot: 168.00-168.50 

Support: 166.25**, 162.25-162.60***

 

 

Seasonal Tendencies

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line). 

*Past performance is not necessarily indicative of futures results.

 

 

Commitment of Traders Snapshot

(updated on Mondays)

Fund positioning in live cattle was relatively flat last week with funds still hovering near a net long position of 17k contracts.

 

 

Feeder Cattle

Technicals (March – H)

March feeder cattle futures were able to hold trendline support yesterday and are knocking on the door of a potential breakout.  If the market can chew through resistance from 226.85-227.925 we could see another leg higher with technical targets coming in north of 230.

Resistance: 226.85-227.925***, 230.00**, 232.20-233.50***

Pivot:  223.00-224.52  

Support: 221.10-222.72***, 216.40-218.00***

 

 

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

*Past performance is not necessarily indicative of futures results.

 

 

Commitment of Traders Snapshot

(updated on Mondays)

Friday’s Commitment of Traders report showed funds were net buyers of about 200 contracts, narrowly shrinking their net short position to 2,526.

 

 

Lean Hogs

Technicals (February – G)

February lean hog futures posted their fifth consecutive day of gains with yesterday’s highest close since November 21st.  If the Bulls can chew through and close above resistance from 72.00-72.50 we could see the rally keep on rolling.  Net sales of pork for 2024 marketing year, which began January 1st, totaled 23,300 MT. 

Resistance: 72.00-72.50***

Pivot: 67.15-67.80

Support:  65.80-66.00**, 64.00-64.50**

 

 

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

*Past performance is not necessarily indicative of futures results.

 

Commitment of Traders Snapshot

(updated on Mondays)

Below is a snapshot of the most recent Commitment of Traders report which showed Managed Money (Funds) holding a net short position to the tune of roughly 17k contracts.

 

 

 

Sign up below for a FREE trial of our daily commentary!

https://bluelinefutures.com/2023-signup/?utm_source=Barchart

 

📉Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.  

📈Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

Tags

 

Latest News

AgDay Markets Now:  Darren Frye Says Grain Markets Post Higher Week but Will Need These Factors to Keep Rallying
AgDay Markets Now: Darren Frye Says Grain Markets Post Higher Week but Will Need These Factors to Keep Rallying

Darren Frye, Water Street Solutions, says the wheat rally came on weather and technical buying, which also helped corn and soybeans post a higher week. He's not sure it can continue without a bigger weather issue.

Why Did Jerry Gulke Make Some Last-Minute Planting Changes on His Farm?
Why Did Jerry Gulke Make Some Last-Minute Planting Changes on His Farm?

Gulke Group president Jerry Gulke explains why he made the last-minute decision to switch 200 acres of corn to soybeans.

Wheat Outlook 5-30-90 Days (4.26.24))
Wheat Outlook 5-30-90 Days (4.26.24))

Recap of the week's price action, advice and outlook broken down into the next 5, 30 and 90 day segments.

Grains Close Higher for the Week:  Does the Market Need to Rally and Add More Risk Premium or Not?
Grains Close Higher for the Week: Does the Market Need to Rally and Add More Risk Premium or Not?

Grains end mixed Friday but higher for the week led by wheat.  Cattle make new highs for the move helped by stronger cash.  Can the markets continue to move higher?  Darren Frye, Water Street Solutions, has the answers.

APHIS To Require Electronic Animal ID for Certain Cattle and Bison
APHIS To Require Electronic Animal ID for Certain Cattle and Bison

APHIS issued its final rule on animal ID that has been in place since 2013, switching from solely visual tags to tags that are both electronically and visually readable for certain classes of cattle moving interstate.

A Margin Squeeze is Setting in Across Row-Crop Farms, and 80% of Ag Economists Are Now Concerned It'll Accelerate Consolidation
A Margin Squeeze is Setting in Across Row-Crop Farms, and 80% of Ag Economists Are Now Concerned It'll Accelerate Consolidation

There's an immense amount of pressure riding on this year’s crop production picture, and with a margin squeeze setting in across farms, economists think it could accelerate consolidation in the row-crop industry.