Watch us on RFD-TV, today at 9:45 am CT! Live Cattle (October)
October live cattle fell sharply to start last week’s trade but managed to recover those loses and then some in the following four sessions. Friday’s close was the highest price since the beginning of March, when the Covid fears started to pick up steam. August futures will be in delivery at this time next week and with futures at a premium, we could see the rally stall out a bit. The bulk of the sales in the south last week came in from 97.00-97.50. We have been a little off-sides on this move higher with conflicting technicals and fundamentals. Friday’s Commitment of Traders report showed funds net long 33,622 contracts.
Resistance: 110.525-111.25**** Pivot: 106.70-107.30 Support: 101.75-102.65***, 99.35** Feeder Cattle (August)
August feeder cattle spent much of last week recovering from a sharp selloff last Monday. Friday’s close marked the highest prices since the first week of March when the Covid fears started to pick up steam. The RSI (relative strength index) is at 67, not technical in “overbought” territory, but certainly towards the top end of the historical range. Resistance remains intact from 145.00-146.125. A breakout above this resistance could spark a bigger technical rally.
Resistance: 145.00-146.125**** Pivot: 140.675 Support: 138.75-139.425****, 136.00-136.40** Lean Hogs (October)
Lean hogs managed to recover some losses during Friday’s session, the Bulls NEED to see some of that momentum carry into today’s session. If the Bulls fail to reclaim the 50.00 level, the sellers could step in and take us back to the contract lows, 46.475. Friday’s Commitment of Traders report showed funds are net-long 10,721 contracts.
Resistance: 51.675-52.075***, 53.40-53.775**** Pivot: 50.00-50.70 Support: 48.025**, 46.475***
Reach out to learn more about our new Ag Trade Alerts program and how we are positioning for hedgers and speculators!
Call/Text/Email, Oliver with any questions.
Oliver@BlueLineFutures.com and 312-837-3938
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.