Cattle Futures Breakout

Live Cattle (October)

In yesterday’s report and for the better part of the last two months we’ve been talking about selling the top end of the range, 129-130 and continuing to play that until we get confirmation of a breakout or breakdown. Yesterday was that breakout and there was some power behind it. Previous resistance now becomes support, that comes in from 129.875-130.475. On the resistance side, it’s hard to put a lot of significance on levels as momentum rules the day in uncharted territory. The Bulls will want to defend this pocket to keep the momentum in their court. Yesterday’s Cold Storage report came in at 401.259M lbs (38.917M lbs less than last year)...........Click this link to read the FULL report and receive our daily commentary

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Support: Feeder Cattle (September)

In yesterday’s report, we talked about finding resistance points while a market is at contract highs is a difficult task and yesterday was a perfect example of that. Momentum, emotion, and risk departments become the key price drivers. We expect the volatility to continue in today’s session. Previous resistance remains support, that comes in from 165.225-165.525. The Bulls have the technical advantage so long as they can continue to defend that pocket. A failure could start to look like a blowoff top...........Click this link to read the FULL report and receive our daily commentary

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Support: Lean Hogs (October)

October lean hogs tried to rally early on yesterday, but failed against technical resistance, which we remains intact from 89.70-89.975. This pocket represents the top end of the recent range. The 100-day moving average has also acted as an additional technical headwind, that comes in at 99.98 this morning. If the Bulls can chew through resistance, it could spark a bigger move, but lower highs and lower lows has been the trend for the last month, which keeps the ball in the Bear camps court. Yesterday’s Cold Storage report came in at 443.128M lbs (17.507M lbs less than last year). Bellies came in at 27.738M lbs (14.636M lbs less than last year)...........Click this link to read the FULL report and receive our daily commentary

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Support: Dairy Butter reported up 7% YoY, down 4% from last month. Natural cheese stocks up 4% from last year and 1% over last month. Futures markets retained the gains in the made in the morning with the September contract closing at 17.45. Producers expecting a DRP indemnity for Q3 when they look at July and August settlements may be disappointed if buyers enter market for blocks and barrels and push September up to a point where they see vanishing indemnity payments.


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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.


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