• Oliver Sloup

Livestock Roundup

Live Cattle (August)

Cattle futures got a shot in the arm mid- afternoon, on the back of cash trading at 110 in KS, well above the 93-95 that we saw just hours before. Futures finished limit up, giving us expanded limits today, 4.50. After the close, U.S. Agriculture Secretary Sonny Perdue said that meat processing plants will be fully back up in a week to ten days. These are two positive developments, but don’t confuse that with realistic. Is 110 cash trade with the backlog of cattle we have sustainable? Will plants be back at 100% in the next week to ten days? The answer is probably No, to both, but we have seen a trend change in news which is a step in the right direction. We have been moving past the peak panic and less bad news or no news, is good news. Good news is great news.


Technical Outlook

August live cattle chewed through our 4-star resistance pocket which took prices into towards our next resistance levels, 95.10-95.30, this will be our pivot pocket in today’s trade and previous resistance will now become support (92.525-93.675). If the Bulls can achieve follow through today, we could see funds extend their newly found net long position, potentially taking us towards 99.85-100.975. As mentioned in previous reports this week, we are viewing pullbacks as buying opportunities for the time being.


June

Resistance:

Pivot: Contact us for the technical levels

Support:


August

Resistance:

Pivot: Contact us for the technical levels

Support:

Feeder Cattle (August)

August live cattle finally managed to breakout above the top end of the range, follow through today will be important. Previous resistance now becomes support, 130.30-131.225. If the Bulls can defend this pocket going forward, we could see an extension towards 137.70-139.125 in the coming sessions.


Resistance:

Pivot: Contact us for the technical levels

Support:

Lean Hogs (June)

June lean hogs retreated to the 50-day moving average and our pivot pocket yesterday but managed to find strength into the afternoon session. Technical levels remain unchanged from yesterday’s report. Though lean hogs could run higher, we are not sure there is a lot of juice left in the grape at these important levels.


Resistance:

Pivot: Contact us for the technical levels

Support:



Feel free to call/text/email, Oliver with any questions. Oliver@BlueLineFutures.com 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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Futures trading involves substantial risk of loss and may not be suitable for all investors.