Live Cattle (April)
Outside markets continued to selloff and that put pressure on the cattle complex. April live cattle continued to roll over today, accelerating in the final hour of trade, taking us to levels not seen since we recovered from the TYSON fire in September. Fears of a coronavirus outbreak in the US are a real concern as it seems to be a matter of when, not if. To some extent, this is being priced into the markets. The effort to get a vaccine to market is valiant, but even at lightning speed, medical professionals estimate that could be a year away. The Cash trade started to pick up this afternoon with the bulk of it coming in at 115 in the South. Tomorrow’s Fed Cattle Exchange has 755 listed.
Bottom Line: Our intermediate term bias has been on the bearish side for the last several weeks. We are probably due for a relief rally, but this is the cattle market and that means the board can stay irrational longer than most can remain solvent. With the recent spike in volatility....Click this link to get our FULL report! Or email Oliver@BlueLineFutures.com
Feeder Cattle (March)
March feeder cattle dropped like a rock yesterday, taking out the low end of the recent range and closing at technical support, now our pivot pocket. If the market cannot find its footing in the coming days, we would not rule out a retest to the contract lows from early September, 126.05.
Bottom Line: The bears remain in control. Speculative shorts may consider being nimble as daily swings will likely be large. For clients with true hedges on, we have recommended staying hooked. With the....Click this link to get our FULL report! Or email Oliver@BlueLineFutures.com
Lean Hogs (April)
April lean hogs tried to fill the gap left from Monday morning but failed to attract the buyers to get it done. If outside markets can find their footing and stabilize at the least, we think there is opportunity in the near term. With that said, fears of the coronavirus will persist, and weekends will continue to hold more headline risk, so managing your risk and position sizes is key (as usual). Yesterday’s cold storage report showed pork stocks at 625.188 million pounds, below expectations.
Bottom Line:All in all, we thought April hogs held relatively well to start the week, but the bull camp still has their work cut out for them. We think the market can stabilize near term but wouldn’t be expecting a slingshot recovery in the near term....Click this link to get our FULL report! Or email Oliver@BlueLineFutures.com
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.