Daily Livestock Technicals & Fundamentals (10.11.18)
Oliver Sloup of Blue Line Futures - InsideFutures.com - Thu Oct 11, 7:56AM CDT

Last Trades:

LEZ8: -.475 at 116.675, trading in a range of .90

LEG8: -.50 at 121.60, trading in a range of .775

GFX8: -1.375 at 156.125, trading in a range of 1.50

GFF8: -1.70 at 152.05, trading in a range of 1.75


Cattle Commentary:Cattle futures retreated on the talk of softer cash at 110-110.50 emerging. Todays Fed Cattle Exchange was a skunk, no sales with 1,246 offered. The market recovered off of technical support well (see full technical breakdown below) and closed before the volatility in the outside markets started picking up. U.S. stock indices snowballed lower through the afternoon, erasing the gains over the last 3 months in the matter of hours. If this carries over into the overnight and morning session, we will likely see spillover into commodities.


PM Boxed Beef / Choice / Select

Current Cutout Values: / 202.11 / 191.77

Change from prior day: / (.74) / (.95)

Choice/Select spread: / 10.34


Tech Talk

Live Cattle (December)

December cattle traded near 116, a level which we stated yesterday as the bottom end of a new range (has yet to be confirmed). Ignoring the outside market panic, we are keeping an eye on our technical support pocket of 115.45-116.00, this pocket represents the 50-day moving average, previous resistance in July, and the breakout point from September 14th. We are working with clients to be buyers on the first test. The first test means we want to see a spring board off this support, not a lingering trade. On the resistance side of things....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


Feeder Cattle (November)

November feeder cattle retreated into our support pocket, we have had this defined as 155.40-156.00 in yesterdays Livestock Roundup. We believe this is a buying opportunity on the first test, if the bulls cannot get any pop off of this pocket between now and the weekend we would look to neutralize things and regroup for next week. If the bears are able to break support, the next line in the sand comes in from....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


Lean Hogs (December)

December lean hogs finished todays session down .45 at 56.125, trading in a range of 2.175. The reversal off of the rejection of the 200-day moving average today is not the most encouraging thing for bulls despite having a slight advantage on the chart. Significant support comes in from 53.70-54.50, a break and close below here is trend changing and could accelerate the selling. On the resistance side of things, the bulls need to achieve consecutive closes above the 200-day moving average, that comes in near....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.


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