Blue Line Express

Livestock Roundup (2.27.18)

Cattle Commentary:  Cattle futures started the day with a bid in the market but started to lose steam after the first hour of trade.  April fat cattle finished the session up .20 at 124.20, trading in a range of 1.525 on the day.  March feeders finished the session up .80 at 146.35, trading in a range of 1.775 on the day.  The new Fed Chair Jerome Powell was testifying today which started to pressure the broader markets, this may have been part of the reason the market started to soften up as the tops in both markets were put in near the same time.  End of the month position squaring could also be a culprit in limiting today’s upside.  June cattle is starting to pick up volume which means we could start to see position rolls. There was some confirmed cash trade already this week albeit light at 126, this is 2 lower from last week.  Tomorrows Fed Cattle Exchange has 365 head offered.  Boxed beef was higher yet again today.

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 220.52 / 214.79

Change from prior day: /1.00 / .07

Choice/Select spread: / 5.73

 

 

Cattle Technicals

 

Live Cattle (April)

 

April live cattle showed promise in the first half of the days trade but that faded after the market failed to gain meaningful momentum above first technical resistance which we outlined in yesterdays report at 125.45.  The reversal off of that level coupled with the close likely has bulls nervous going into tomorrows session.  A retest of yesterday’s lows likely triggers a run towards the bottom end of our support pocket at 122.55.  Bulls MUST defend this level on a closing basis to keep control of the chart.  A break and close below opens the door for the funds to liquidate long positions, the next support pocket comes in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

Feeder Cattle (March)

 

March feeders poked their head above that key 146.45 level which encouraged some additional buying, but there was not enough conviction from the bull camp to keep prices elevated above there into the close.  The reversal and failure is not what the bulls needed to sleep easy tonight.  If the bulls cannot get something going tomorrow, we could see prices retreat back to significant support which we have outlined as....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

 

Lean Hog Commentary and Technicals (April)

 

Lean hog futures tried to get something going early on but ended up failing to attract new buyers in the back half of the day which encouraged some long liquidation at the end of the month.  April futures finished the session .15 lower at 69.80 (the low tick of the day), trading in a range of .875.  First technical support remains intact at 69.70, if the bulls cannot defend this we will likely see a test towards....Please sign up for a Free Trial at Blue Line Futures 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.