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Live Cattle (August)
Friday’s Cattle on Feed report showed On Feed at 98.7, right inline with estimates. Placements came in at 92.9, a hair below the average of estimates. Marketings came in at 102.7%, right inline with the average of estimates. All in all, this was a fairly neutral report which does little to offer the market new direction. On the technical side of things, the market has been tethered near the 100-day moving average, which today comes in at 120.03. The Bulls need to continue to defend this on a closing basis. Consecutive closes below could spark technical selling. We remain upbeat on live cattle but continue to look out to the December contract.
Resistance: 121.575-121.95***, 124.45-124.60**, 125.05-125.775***
Support: 118.85-119.20****, 117.05-117.40**
Feeder Cattle (August)
Feeder cattle launched higher on Friday, trading against the July 6th and 7th highs. With grains lower in the early morning trade, that resistance level could be taken out which would open the door for a run at contract highs, 162.40.
Resistance: 160.925-161.10***, 162.40**
Support: 153.70-154.25**, 151.225-151.90***
Lean Hogs (August)
August lean hogs have been grinding higher and holding firm above the 100-day moving average, if they can continue to defend that, we could see prices work towards the gap from June 17th, closer to 110-111. With that said, there are some bearish seasonals in the October contract that we have been positioning in for clients.
Support: 103.225-104.15***, 100.275**, 98.10***
Cold Storage and Milk Production reports may have halted the recent milk price slide. Although inventories are still high for cheese and butter and milk production is still above demand, prices may have retreated to a level that reflects the data. Expect the recent trend of higher volatility in the near future.
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Blue Line Futures
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.