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Live Cattle (February)
Live cattle futures continue to shock the world, rallying off last week’s lows despite weaker cash market trades. The market is now approaching trendline resistance, we have defined this pocket as 113.90-114.025. The Bears MUST defend this pocket. A break and close above here could spark a wave of enthusiasm.
This morning’s weekly export sales report showed net sales of 10,100 MT reported for 2020 were up noticeably from the previous week, but down 15 percent from the prior 4-week average.
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 tried to break lower yesterday but found support at the 50-day moving average, 138.90. The market finished above the to end of the recent range and near our resistance pocket, 140.925-141.50. If the Bulls can chew through this pocket, we could see the rally extend above the December 1st spike high, 143.475.
Resistance: 140.925-141.50***, 143.475****
Support: 136.575-137.25***, 134.65**, 133.00***
Lean Hogs (February)
February lean hogs retreated early on yesterday but managed to close off the lows and finish the session right near where they finished the previous session, coincidently this is also near our pivot pocket, 66.375-66.50. If the Bulls can chew through this pocket, we could see a continuation towards the top end of the recent range, 68.00-68.50.
This morning’s weekly export sales report showed net sales of 39,900 MT reported for 2020 were up 51 percent from the previous week and from the prior 4-week average.
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.