Livestock Roundup

Live Cattle (April)

April live cattle stage an inside day, leaving many of the technicals from our previous report unchanged. Technical resistance remains intact from 121.225-121.80. Consecutive closes above this pocket could spur a run towards 123.075-124.30, a pocket that we would like to sell against on the first test. This is a wider pocket than we would ideally like, but there is a lot of significance within those prices, including the 100-day moving average, the gap from January 27th, a key retracement, and several other previously important price points. The cash market started to get a little more active today with the bulk of the activity coming in at 120 in Texas and Kansas. The monthly Cattle on Feed report will be out on Friday, 2pm CT. Expectations are as follows: On Feed 102.4%, Placements 101.5%, Marketings 100.7%.

Bottom Line: Our intermediate term bias leans on the bearish side but we are welcoming a relief rally to re-enter shorts at better prices, ideally closer to our 4-star resistance from 123.075-124.30. If you’re bullish and have been long for the past few sessions, this pocket would be a potential place to reduce.

Resistance: 121.225-121.80***, 123.075-124.30****

Pivot: 119.825-120.05

Support: 118.675-119.05***, 115.925-116.70****

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Feeder Cattle March

March feeder cattle continued to show signs of strength, finishing higher for the fourth consecutive session, putting prices within a stones throw of our 4-star resistance pocket. We have resistance defined as 141.75-142.625, this pocket represents the 50 and 100 day moving average, a key retracement, and the breakdown point from January 23rd.

Bottom Line: We are still looking at 4-star resistance as a spot to be more aggressive on re-entering short/hedge positions for clients. If the bear camp is unable to defend the upper end of that pocket, we would neutralize our bias.

Resistance: 141.75-142.625****, 147.75***

Pivot: 138.775-139.45

Support: 138.775-139.45**, 136.725-136.90***, 133.25-134.20****

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Lean Hogs (April)

April lean hogs managed to work out above the top end of the recent range and came within a stones throw of filling the gap from the end of January. If the bulls can maintain this week’s strength we could see a run back towards 70-72. Previous resistance now becomes a pivot pocket that the bulls need to defend, 66.50-66.85.

Bottom Line: As mentioned in yesterday’s report: “We still think we could see prices repair the damage that was done at the end of January and beginning of February, but we would not be looking for much more than that”.

Resistance: 67.95-68.675***, 72.00-73.075****

Pivot: 66.50-66.85

Support: 63.15-63.60***, 61.00****

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Call/Text/Email Oliver with any questions!


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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