Blue Line Express

Livestock Roundup (7.2.18)

Attention:  Tomorrow is an abbreviated session, closing at 12:15pm cst.

 

Last Trades:

LEQ8: .525 at 107.25, trading in a range of 1.975

LEV8:  .25 at 110.275, trading in a range of 1.575

GFQ8: .875 at 152.20, trading in a range of 1.825

GFU8: 1.325 at 152.275, trading in a range of 1.975

 

Cattle Commentary:  Cattle futures started the new week, month, and quarter with some follow through buying after Friday’s limit up move.  Those gains subsided just before the 9:30am time frame, trading both sides of unchanged for the remainder of the day.  The inability to maintain strong momentum through the entirety of the session is a bit of a caution flag for us in the very near term.  With the July 4th holiday right around the corner, we would not be surprised to see volume dry up for the remainder of the week (baring any dramatic headlines).  Due to the holiday, the Fed Cattle Exchange will be canceled this week, and resume its regular schedule going forward.  On the cash side of things, we are not expecting much o happen until the back half of the week. 

 

PM Boxed Beef / Choice / Select

Current Cutout Values: / 211.88 / 198.77

Change from prior day: / (.08) / (.20)

Choice/Select spread: / 13.11

 

Live Cattle (August)

 

August live cattle futures got out of the gate hard on the open, but lost steam within the first hour of trade.  Prices eclipsed 107.775 for the first time since March, this level is significant, representing the 50% retracement from the November highs to the April lows.  If the bulls can achieve a conviction close above here, we would expect to see the market run towards....

 

Feeder Cattle (August)

 

August feeder cattle posted their highest price since the beginning of March, leaving the door open for a potential retest of the February highs at 155.975.  The chart has been constructive, marking higher lows and higher highs consistently since the middle of May.  Previous resistance now becomes first support, we see that at....

 

Lean Hog Commentary and Technicals (August)

Lean hog futures traded in an outside day (trading outside the previous days highs and lows), which is impressive considering the range of Friday’s trade.  August futures finished today’s session down 2.025 at 74.425, trading in a range of 3.35.  This seemed to be a bit of a delayed reaction from last weeks hogs and pigs report where we saw record supply for the second half of the year.  Perhaps end of the quarter positioning is they reason for the delayed reaction.  On the technical side of things, the market tested our 3-star pocket from 76.90-77.25 but could not attract any new buyers at the point (the high was 77.175).  The market also hit 4-star support which we have listed as 73.275-74.00; not very often do you get a test of significant support and resistance levels on the first day.  Due to the velocity of the move lower, we are now looking to readjust significant support down to....

 

 

 

 

 

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.