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Live Cattle (June)


June and August live cattle were up 2.375 and 2.10 for the week, respectively. Friday’s Commitments of Traders report showed Managed Money were net buyers of 4,181 contracts through May 18th, expanding their net long position to 54,309 contracts. The cash trade has been somewhat stagnant recently, but if slaughter numbers keep increasing from these levels, the hope is that we can chew through the backlog of cattle and get cash to work back north on a longer time frame (*Hope is the key word there). There is a lot of talk on both sides of the market recently, optimistic/bullish and pessimistic/bearish. There is another option, and that is Neutral. Maybe we are in an environment where we come into more of a tradable range. For much of last week, the market acted as a magnet to our pivot pocket, which remains intact to start this week, 117.15-117.85. If the Bulls can chew through this pocket with any kind of conviction, perhaps technical traders start dipping the toes in again, in hopes of a push back towards the 120 mark. A continued failure at our pivot pocket could take us back to the low end of the recent range and a key Fibonacci retracement level, 113.875-114.175. If you are trading June, keep in mind that the shot-clock is winding down..........Click this link to read the FULL report and receive our daily commentary


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Feeder Cattle (August)

August and September feeder cattle were 2.55 and 2.225 higher for the week, respectively. Friday’s Commitments of Traders report showed Managed Money were net buyers of 1,298 contracts through May 18th, making them net long 1,203 contracts. Some of the recent volatility in the grain markets has spilled into the feeder cattle market and we expect that to continue. Corn is starting to show signs of a potential head and shoulders pattern, which is bearish. If that plays out, it could be enough of a tailwind to break August feeders back above technical resistance from 153.725-154.425, which has been a brick wall over the last two weeks. This pocket represents a key Fibonacci retracement along with other previously important price points. A break and close or consecutive closes back above this pocket could open the door for another run back near 160..........Click this link to read the FULL report and receive our daily commentary


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Lean Hogs (June)

June and July lean hogs were up 5.50 and 7.55, respectively. Friday’s Commitments of Traders report showed Managed Money were net buyers of 2,534 contracts through May 18th, the bulk of that coming from short covering (2,358 contracts). The Managed Money position now stands at net long 71,118 contracts, a historically aggressive position. There has been better news from China recently, but that has not stopped the bullish technical landscape. The market is just a hop, skip, and jump away from contract highs, 115. A breakout above this level would put us back in uncharted territory and could spark additional short covering from Managed Money (where there are 15,864 short contracts vs. 90,442 longs), making the next meaningful resistance pocket difficult to find..........Click this link to read the FULL report and receive our daily commentary


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Dairy

With so many components that make up the dairy market, opportunities present themselves occasionally. Exports of dry milk products have been strong and so have prices recently. Dry why is the main reason we haven't seen the prices for the Cheese/Class III spread in September and October at these low levels in the past 10 years. It only closed lower once, in 2014. When that occurred Class III was trading $24-$25..........Click this link to read the FULL report and receive our daily commentary


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Call/Text/Email, Oliver with any questions.

Oliver@BlueLineFutures.com and 312-837-3938


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Blue Line Futures

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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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