Livestock Futures Rally Despite Weakness in the Outside Markets

Cattle Summary

Sign Up for Market Research - Blue Line Futures

Daily Cutout Values

Choice: 259.79, Down 3.25 from the previous day.

Select: 239.68, Down 3.07 from the previous day.

Choice/Select Spread: 20.11

5 Area Average Cattle Price

Live Steer: 144.00

Live Heifer: N/A

Dressed Steer: N/A

Dressed Heifer: N/A

Daily Slaughter

Estimated at 126,000. Unchanged from last week and 6,000 more than the same week last year.

Feeder Cattle Index

8/29/2022: 183.00

8/26/2022: 183.16

Technical Snapshot

Live Cattle

Sign Up for Market Research - Blue Line Futures

October live cattle futures were able to break the 4-day streak of lower prices, on a day when the outside markets saw meaningful pressure. If you're bullish the market, this is your silver lining. The market finished the session right near the upper end of our pivot pocket, 143.25-143.775. If the Bulls can keep yesterday's momentum alive, perhaps we see a retest of 145.10-145.975. We are in the camp that the cash market may stall out, which could limit the upside. We are monitoring outside markets and commodities as a whole, if they continue to trend lower, it will be an uphill climb for live cattle. We are still in the camp that the three major moving averages could be tested in the near term.

Resistance: 145.10-145.975***, 147.35-147.50**

Pivot: 143.25-143.775

Support: 141.75-142.10****, 138.025-138.35****

Feeder Cattle

Sign Up for Market Research - Blue Line Futures

November feeder cattle were able to stabilize yesterday, thanks to a pullback in part to a pullback in corn. Corn futures are lower this morning which may be able to help feeder cattle find more footing. The market finished right near the 50-day moving average, which represents the upper end of our pivot pocket. A conviction close back above here could propel the market back to the 186.00 area. Support levels remain intact after being tested and holding in Monday's session.

Resistance: 185.70-185.90***, 188.125**

Pivot: 183.00-183.25

Support: 180.80-181.35***, 179.75**

Hogs Summary

Sign Up for Market Research - Blue Line Futures

Daily Direct Hogs Plant Delivered (as of 1:30 PM CT)

Carcass Base Price

Range: 100.00-120.00

Weighted Average: 106.83

Change from Prior Day: -2.52

Head Count: 7,286

Daily Hog Slaughter

4800,000. Unchanged from last week and 3,000 less than the same week last year.

Technical Snapshot

Lean Hogs

Sign Up for Market Research - Blue Line Futures

Lean hogs have had a solid performance over the last two sessions, getting the bullish seasonal trade off to a good start (the seasonal is for the June contract, contact us for more information). The market got up to the 50 and 100 day moving averages but wasn't able to chew through that resistance band from 94.225-94.975. A breakout above that pocket could open the door for another leg higher, with the next resistance pocket coming in closer to 98.00.

Resistance: 98.05-98.25***,100.375-100.825***, 101.65**

Pivot: 94.225-94.975

Support: 91.50**, 89.40-90.225***, 86.825-87.40****

Don't have a trading account with Blue Line Futures?

Open an account from the U.S

Open an account from the U.K and Europe

Open an account from Canada

Open an account from anywhere not mentioned

If you have any questions about markets, trading, or opening an account please let us know!

You can email us at info@BlueLineFutures.com or call 312-278-0500

BlueLineFutures.com

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.