• Oliver Sloup

Livestock Roundup

Outside Markets: Outside markets are “steady” this morning, which now days just means not limit up or down. The “steady” trade is helping offer support to the agricultural markets in the overnight/early morning trade, the early indication is that will spill into a positive livestock open, but that can change quickly, so don’t take it to the bank.


Cattle

How can you rationalize the moves that we have seen over the last two weeks? Simple answer, you can’t. I usually don’t like to rag on market conditions but the only way to explain it is, stupid. I doubt we are alone when we say cattle are extremely cheap here, but that doesn’t mean you need to load the boat and get in without a plan. The concern is packing plants ratcheting back capacity. Is it going to happen? I don’t know, but you can’t ignore the possibility. We have been looking to the options market to get good longer-term exposure, allowing us to mentally and financially weather the insane intraday swings. Sure, options are expensive, but there are spreads to utilize that help lower the cost while keeping good upside exposure.


Lean Hogs

June lean hogs made new lows yesterday but managed to close in the middle of the very recent range. As of writing this, it looks like we will see a firm open in hogs, but that can change quickly. Technicals remain fairly useless, hopefully we can see a few consecutive days of normal price action to let them recalibrate. If you want to play for a recovery in commodities, we think there is better opportunity than hogs.


Sign up for your FREE two-week trial of our daily commodity reports!

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.

0 views
Logo_desktop_2x.png

141 W. JACKSON BLVD., SUITE 2845

CHICAGO, IL 60604

INFO@BLUELINEFUTURES.COM

P: (312) 278-0500

F: (888) 370-2221

  • YouTube - White Circle
  • Facebook - White Circle
  • Twitter - White Circle
  • LinkedIn - White Circle

© 2020 by Blue Line Futures, LLC. All rights reserved.

Futures trading involves substantial risk of loss and may not be suitable for all investors.