Live Cattle (February)
This morning’s export sales report showed Net sales of 3,000 MT reported for 2020 were down 78 percent from the previous week and 80 percent from the prior 4-week average. We heard some cash trade in Western Nebraska coming in near 106. This is sharply lower than what we have seen recently, but is some of this priced in? With December trading near 107 we believe this partly priced in, but we are still worried about Feb. futures in the near term. We have held trendline support after filling the gap, but we have failed to see any enthusiasm on the buy-side off support. We are moving our 4-star support pocket from 110.55-111.00 to a two-star level. If you want to be a buyer, we think there will be better opportunities to come and we continue to look at the deferreds for clients who wish to be long.
Resistance: 113.90-114.025**, 115.45***
Support: 110.55-111.00****, 108.95-109.00***, 105.40-105.525****
Feeder Cattle (January)
January feeder cattle continue to chop around on both sides of the market. A failure to find sustainable relief yesterday has us nervous that we could see additional pressure and a drop into the low 130’s. Our conviction on the direction of feeder cattle is a little more muted at the moment.
Resistance: 142.975-143.65***, 147.375****
Support: 137.25-137.50***, 134.65**, 132.475-133.00****
Lean Hogs (February)
This morning’s export sales report showed Net sales of 26,500 MT reported for 2020 were down 15 percent from the previous week and 13 percent from the prior 4-week average. The market finished yesterday’s session near our pivot pocket, 66.375-66.50. A break and close above here could spur a retest of trendline resistance, near 68.00.
Resistance: 68.00-68.50****, 70.15-70.45***, 72.00****
Support: 64.60**, 62.7-63.70****
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Blue Line Futures
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.