Livestock Roundup and Dairy!

Live Cattle (June)

Yesterday morning the USDA announced a marketing-year high for export sales, stating that the Netherlands bought 33,700 metric tons. After the market closed, the USDA came out and said that was incorrectly reported and a correction would be made in next week’s report (Not a good look for a Department that already lacks public trust in some of their reporting). Cash cattle has been stagnant, ranging from 119-120 in the south and 120-121 in the north. This week’s slaughter is on pace to be the largest of the month, good to see that moving in the right direction. The monthly Cattle on Feed report will be out after the close, the estimates are as follow:


Cattle on Feed estimates

On Feed: 103.7

Placed: 120.8

Marketed: 133.6


The technical outlook has not changed much over the last three sessions as the market appears to be tethered near our pivot pocket, 117.15-117.85. The Bulls need to see a conviction close, or consecutive closes above this pocket to make another run at 119.825-120.35. A failure to find their footing could open the door for a retest of the bottom end of the recent range, 113.875-114.175..........Click this link to read the FULL report and receive our daily commentary


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Feeder Cattle (August)

August feeder cattle got hit yesterday, with the corn rally adding a headwind to the market. All in all, the market is sharply sideways this week as the market flutters around our pivot pocket from 151.925-152.50. 153.725-153.95 is the pocket the Bulls have been struggling with recently, a conviction move above here could renew buying interest from technical traders..........Click this link to read the FULL report and receive our daily commentary


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Lean Hogs (June)

June lean hogs have recovered roughly half of the losses from the recent downturn. The Bear camp must defend 112.675-113.125. A break and close back above this pocket could take us to not only retest contract highs (115), but potentially make new contract highs. The RSI (relative strength index) is at 59, a very neutral reading..........Click this link to read the FULL report and receive our daily commentary


Bias:

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Dairy

We are excited to welcome a new member to our team, Mike Merucci!

Mike has traded for 30+ years, many of them on the floor of the CBOE (Chicago Board of Options Exchange). Most recently, he has also worked as a consultant and head milk trader for a dairy fund. If you would like to know more about dairy hedging opportunities, email: mmerucci@bluelinefutures.com


Milk production up 3.3% year over year is the highest 30-day number in US history. There are 135,000 more cows being milked in April than 10 months ago. Of course, those are pandemic related shock numbers, a little higher than generally expected but not necessarily a market mover. Class III mostly up a few cents. Class IV down slightly. There is a lot of milk being produced and will make the Cold Storage report on Monday a little more interesting.

Bias remains steady

Class III; Q321 neutral/bearish Q421 and Q122 bearish. Q222 and Q322 neutral

Class IV; H221 and Q122 bearish. Q222 and Q322 neutral..........Click this link to read the FULL report and receive our daily commentary


Bias:

Previous Session Bias:

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Call/Text/Email, Oliver with any questions.

Oliver@BlueLineFutures.com and 312-837-3938



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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.

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