Can Livestock Futures Stabilize?
Watch us on RFD-TV, today at 9:45am CT!
Live Cattle
Technicals (June-M)
It was a risk-off day into the weekend for many markets, and live cattle were not immune. The “worst case scenario” was avoided over the weekend and many markets are showing signs of relief, perhaps that can be the same for cattle to start the week too. Support remains intact from 169.00-170.00. This is a MUST HOLD pocket. A break and close below here could trigger another wave of long liquidation. On the resistance side of things, the Bulls want to get back out above 172.90-173.425 to spur a bigger relief rally. Friday’s 5-area average price for live steers was reported at 183.93, softer than recent weeks but still pretty darn good considering the pressure in the futures market.
Resistance: 175.70-176.40, 177.72-178.45
Pivot: 172.90-173.425
Support: 169.00-170.00***
Seasonal Tendencies (June Live Cattle)
Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line). Seasonally we start to see June futures soften up, but if you’ve been watching cattle at all over the last year you know that seasonals tendencies tend to have had a lower correlation this year.
*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 sellers of roughly 8.3k contracts. This drops their net long position to 36,76. Historically, we would look at this as a fairly neutral position.
Read the full article here: Can Livestock Futures Stabilize? - Blue Line Futures
Email info@Bluelinefutures.com or call 312-278-0500 with any questions -- our trade desk is here to help with anything on the board!
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
