Cattle on the Chopping Block
Live Cattle
Technicals (April- J)
April live cattle futures made new highs for the move but reversed sharply midday as traders looked to tie up loose ends ahead of today’s Cattle on Feed and Cold Storage reports. As mentioned in yesterday’s report, we wouldn’t be surprised to see the market continue to catch it’s breath at these levels, ahead of a highly anticipated report.
This morning’s export sales report showed net sales of beef at 12,600 MT for 2024 were down 25 percent from the previous week and 34 percent from the prior 4-week average.
Feeder Cattle
Technicals (March – H)
Like live cattle, March feeder cattle made new highs for the move but reversed midday on profit taking ahead of this afternoon’s report. Unlike live cattle, feeder cattle were still able to hold onto gains into the close. The RSI remains in overbought territory which could lead to some consolidation and potentially profit taking in today’s trade. I’d also keep in mind that Feeders have been a big beneficiary of a bloodbath in the grain markets, if the grains ever rally again, that could put a headwind in prices.
Lean Hogs
Technicals (April- J)
April lean hogs had a sharp move higher yesterday, testing the June highs but falling short. The recent rally has taken the RSI back into overbought territory. Previous resistance from 85.50-86.05 will act as the pivot pocket in today’s trade. The Bulls have the advantage so long as they can defend this, a break and close below and we could see a retracement back to trendline support near 84.00. This morning’s weekly export sales report showed net sales of pork at 28,900 MT for 2024 were down 14 percent from the previous week and 17 percent from the prior 4-week average.
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