Cattle Commentary: Cattle futures continued to roll off a cliff today with February leading the way on the fats, finishing -1.70 at 117.55, trading in a range of 2.225 on the day. As mentioned in the weekend update, funds will be rolling out of front month futures and into April and June; there have also been some talks that some funds may just move to the sidelines. April was down 1.20, and June down .775. Feeder cattle were able to hold a little better footing with help from corn testing contract lows. March feeders finished unchanged at 141.975, trading in a range of 1.825. We did see some cash trade which is the first Monday we’ve seen this in what seems like a lifetime. 120 was reported in Texas, Wyoming, Colorado, Nebraska. This compares to Fridays cash trade of 121-122. Boxed beef was higher this afternoon again.
PM Boxed Beef Choice Select
Current Cutout Values: 210.20 203.37
Change from prior day: .69 1.05
Choice/Select spread: 6.83
Live Cattle (February)
Funds rolled and sold today as liquidation in February fats led the way and deferred months held “more” firm. Futures have taken as much as 6.85 off of prices from high to low over the past three sessions. The RSI (relative strength index) is currently at 38, typically a reading below 30 represents exhaustion. First resistance for Feb futures comes in from…Please sign up for a Free Trial with Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
March feeder cattle found support at the 200-day moving average. That support pocket from 139.85-140.30 will continue to offer value until we see a conviction close below. If the market can continue to hold support, we expect to see a retest of…Please sign up for a Free Trial with Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary & Technicals
February lean hog futures posted their highest print of the day on the open, which happens to also be new contract highs at 73.40. We have been cautious of how much more room there is to the buy side here, but the bulls remain resilient and you have to respect that. If the market does fail to close above resistance we could see...Please sign up for a Free Trial with Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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