Live Cattle (February)
Today’s live cattle trade was like watching paint dry. There is no new news, and participation was low; that does not bode well for someone who is tasked with writing daily commentary. Not much has changed from the previous day’s report: “Fundamentals remain relatively soft and we are expecting that to help keep a lid on the market, coupled with technical resistance from 113.90-114.025.”. The market finished right near our pivot pocket, 112.125-112.70. A break and close below this pocket could accelerate the selling, though we are not sure it will be able to before Friday’s Cattle on Feed report. Tempered expectations and a shorter-term time frame may be the path of least resistance as we round out the year.
Friday’s Cattle on Feed estimates are out, they are as follows: On Feed 100%, Placements 91.4%, Marketing’s 98.7%.
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 finished today’s session little changed after trading in a narrow range, keeping many of our technical support and resistance levels intact. Resistance comes in from 140.925-141.50, we continue to lean on the sell-side against this pocket. A break and close below our pivot pocket, 138.90-139.50, could accelerate the selling towards the low end of the recent range, 136.575-137.25.
Resistance: 140.925-141.50***, 143.475****
Support: 136.575-137.25***, 134.65**, 133.00***
Lean Hogs (February)
February lean hogs saw follow-through momentum from yesterday’s trade, filling the gap from December 3rd. The market finished near our pivot pocket 66.375, the Bulls will want to defend this pocket to keep momentum in the favor. A failure to do so could start to erode gains from the last two sessions.
Resistance: 68.00-68.50****, 70.15-70.45***, 72.00****
Support: 62.7-63.70****, 58.25-59.65**
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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.