Livestock Roundup

Live Cattle (February)

February live cattle traded in its tightest range in some time, leaving us little changed (again) on the technical landscape. Resistance remains intact from 127.225-127.90, above there is uncharted territory and finding meaningful resistance becomes more difficult. On the support side of things, 124.55-125.10 is the pocket we are keeping an eye on, a break and close below there could trigger long liquidation from the funds. We still like leaning on the short side against technical resistance, but the conviction has dwindled with the market being mostly range-bound for the past several months. Today’s Fed Cattle Exchange has 561 head offered. The Cold Storage report will be out after the close, but the big-ticket item this week is the Cattle on Feed report.

Resistance: 127.225-127.90***

Support: 124.55-125.10***, 123.125-123.85****

Feeder Cattle (March)

March feeders finished the day in negative territory but managed to defend Friday’s lows and the 50-day moving average. A break and close below here would leave the door open for a retest of the bottom end of the range, we have defined that as 142.85-143.125. Resistance on the top side remains intact from 146.85-147.975.

Resistance: 146.85-147.975****

Pivot: 144.275

Support: 142.85-143.125****, 141.55-141.775**

Lean Hogs (February)

February lean hogs have been consolidating for the last several sessions as the bulls try to continue defending the December lows of 65.40. A break and close below here leaves risk to the August lows of 63.675. First resistance comes in from 68.00-68.225, consecutive closes above here would start to repair the chart and take us back towards 70.00-70.40, the much more significant (trend-changing) resistance pocket.

Resistance: 68.00-68.225**, 70.00-70.40***, 73.95-74.35****

Support: 65.40-66.50****, 63.675**

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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