Live Cattle (October)
Live cattle futures made new lows for the move yesterday, trading into our three-star support pocket which we have had defined as 102.60-103.65. This pocket offered an opportunity for shorts to reduce exposure. The Bears remain in control of the chart until we see consecutive closes above our pivot pocket, 105.50-106.50. This morning’s export sales report showed net sales of 11,400 MT reported for 2020 were down 4 percent from the previous week and 19 percent from the prior 4-week average.
Resistance: 108.90-109.00***, 111.00-111.25****
Support: 102.60-103.65***, 99.35**
Feeder Cattle (October)
In yesterday’s report, we said: “A break and close below support near 140 could trigger additional pressure, the next target coming gin from 137.60-138.025.”. We got that all in the course of a few hours. That support pocket held which could lead to some near-term consolidation, but the Bears remain in control until we see consecutive closes back above 141.95-142.375.
Resistance: 144.65-145.075****, 151.175-151.725****
Support: 140.05-140.50***, 137.60-138.025***
Lean Hogs (October)
October lean hogs made new highs for the move yesterday, inching closer to our next upside target of 58.30. Higher lows and higher highs continue to be the trend as funds continue to build a bigger, long position. This morning’s export report showed Net sales of 53,600 MT reported for 2020 were up 36 percent from the previous week and up noticeably from the prior 4-week average.
Resistance: 58.30**, 61.90-62.50****
Support: 53.40-53.775**, 52.00-52.75***
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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.