Livestock Roundup

Live Cattle

August live cattle responded to Friday’s Cattle on Feed report well, in yesterday’s session. We were encouraged to see the strength hold through the session, as opposed to strong open that fizzled away all day; something we have seen a lot of recently. Some states are laying the groundwork to reopen in May, including things like restaurants. Though the talk is it will start with 25% capacity restrictions, this is a step in the right direction.

Technical Outlook

The market remains in the middle of a range that has been established over the last three weeks. The consolidation has been welcomed, providing several opportunities for shorter term traders. Technical support and resistance remain intact, from yesterday’s report. Significant support for the August contract comes in from 86.375-87.00, the Bulls MUST defend this pocket. A close below could lead to a retest of the contract lows. If the Bulls can defend this pocket, we could continue to see the bottoming process take place, forming an inverse head and shoulders on the daily chart. Significant resistance comes in from 92.525-93.675. Consecutive closes above here likely sparks short covering and takes us back above the psychologically significant 100 level.


Resistance: 85.35**, 88.125-89.25****

Support: 79.85-80.70****, 76.60***


Resistance: 92.525-93.675****, 100.975-104.475***

Pivot: 89.65-90.70

Support: 86.375-87.00****, 84.575-85.175**, 80.50****

Feel free to call/text/email, Oliver with any questions. and 312-837-3938

Feeder Cattle (August)

August feeder cattle opened higher, but didn’t get a lot of follow through, through the session. The market is threatening to breakout above the top end of the wedge, this could lead to a bigger directional move. Resistance today comes in from 130.30-131.225. These are wider ranges than we typically like to rely on, but that’s the environment we are in. If the bulls can achieve consecutive closes above this pocket, we believe that would open the door for a retest of the March 25th highs, 139.00. On the support side of things, 121.00-121.65 is a significant pocket. A close below here could take us to the gap from April 6th, 118.825. We believe the bull camp has a slight advantage on the chart, but they need to see a move above resistance soon. A failure will show a lack of conviction and the bears could pounce.

Resistance: 130.30-131.225***, 134.10-135.10**, 137.70-139.125****

Support: 123.475-124.30***, 121.00-121.65****, 118.825**

Feel free to call/text/email, Oliver with any questions. and 312-837-3938

Lean Hogs (June)

June lean hogs trade limit up, giving us expanded limits today, 5.50. Early indication is for additional momentum today. 57.15 has been the target, this represents the April 8th highs. Could the market continue to breakout above this barrier? Absolutely, but if you’ve able to ride the wave higher, this is the area to consider reducing some of that exposure.

Resistance: 57.15***, 59.325-60.35****, 64.25-65.45***

Support: 51.325-51.625**, 48.05-48.475**

Feel free to call/text/email, Oliver with any questions. 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.

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