Live Cattle (December) Click here to get our daily reports emailed to you!
Live cattle futures opened sharply lower in yesterday’s session, but as mentioned in our daily commentary (sent out before the open) and in our interview with RFD-TV, perhaps this is the bearish headline that creates the capitulation we need to mark a near term bottom. If the Bulls can find some relief through today’s session and close above our pivot pocket from 127.825-128.30, we could see that lead to more relief and a run back at the 100-day moving average, 130.725.
Resistance: 130.75-131.575***, 134.575-134.85***, 138.225**
Support: 125.675**, 124.35****
Feeder Cattle (September)
September feeder cattle were sharply lower yesterday, but looked poised to open with some strength, will it last is the big question. The market is more oversold than it was when we were making lows back in May, the current RSI (relative strength index) is at 24. Techncial indicators are thought to go by in an environment like this, so expect some wide intraday swings in the coming sessions.
Resistance: 156.575-157.75***, 160.05-160.825***, 163.00-163.575***
Lean Hogs (October)
Lean hogs continued to bleed lower in yesterday’s session, testing and defending our 4-star support pocket from 80.575-80.90. This is a “must hold” pocket for the Bull camp, a failure to do so could open the door for a bigger selling wave.
Resistance: 86.875-87.25***, 90.875**, 91.45-91.725***
Support: 80.575-80.90****, 79.125**, 75.00-76.00**
Dairy products have traded sideways recently and may stay that way this week barring any cash market surprises. Milk Production, GDT Auction and Cold Storage all happen next week. Demand isn't expected to pick up significantly for the last quarter of the year which could be a problem if the delta variant slows the global economy. Looking at the supply numbers next week may give the market its direction.
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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.