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Cattle Reverse Hard

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Cattle Reverse Hard

Jan 04, 2018

Video here.

Cattle Commentary:  Cattle futures were both sides of unchanged today, starting the morning session with an attempted breakout which led to an ultimate failure by the end of the day.  February live cattle futures finished down .85 at 122.10, trading in a range of 1.525 on the session.  As mentioned yesterday, funds are starting to roll some and volume is picking up in April, which finished down .725 at 123.65.   March feeders finished the day down 1.725 at 145.10, trading in a range of 3.525.  spreads are wide with bids at 121 and offers at 126.  There was a small reginal that payed 125 in the north today, that is two over the bulk of last weeks trade.  As mentioned in yesterdays report, futures prices are opportunistic for hedgers and speculators.  Boxed beef was up again today.

PM Boxed Beef                       Choice             Select
Current Cutout Values:           208.67             200.86
Change from prior day:          .05                   1.70
Choice/Select spread:            7.81

Cattle Technicals

Live Cattle (February)

February live cattle attempted to break out of our major resistance pocket from 123.35-123.80 for the third session in a row.  If you’ve been reading our reports you know that this represents a key Fibonacci retracement from the August lows to November highs, the 50-day moving average, and more importantly a breakout point from October 24th and a breakdown point from December 1st.  The inability to breakout led to long liquidation from funds which opens the door to our target of…. Please register for a Free Trial to view our entire technical outlook and proprietary bias and levels

Feeder Cattle (March)

March feeder cattle looked destined to test resistance from 149.10-149.40 but ran out of gas in the afternoon, posting a high of 148.55.  The inability to sustain momentum gave funds an excellent opportunity to liquidate some long positions after climbing 9.95 in the last 7 sessions.  We think this liquidation could continue to…. Please register for a Free Trial to view our entire technical outlook and proprietary bias and levels

Lean Hog Commentary & Technicals

Lean hog futures traded both sides of unchanged today, with February futures finishing up .45 at 71.50, trading in a range of .975.  Prices remain at the top end of the range with first resistance coming in from 72.25-72.45, above that is contract highs at 73.30.  We continue to believe that there is limited near term value at these prices and a failure to breakout will lead to long liquidation.  A breakdown and close below support from 70.20-70.30 opens the door to accelerated selling, pressing prices back to… Please register for a Free Trial 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.

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