rounded corner
rounded corner
top border

Livestock Roundup: Cattle and Lean Hogs


Bookmark and Share

Blue Line Express

Email Oliver@BlueLineFutures.com or AgHedging@BlueLineFutures.com

You can also reach us at 312-278-0500

Cattle

January Feeder cattle saw a higher trade to round out the week, finishing the day .50 higher after trading in a range of 1.825. February live cattle futures closed .925 lower on Fridays abbreviated trading session after trading in a range of 1.05. There were some cash trades through the week that got up to 120.50. We will be interested to see how this weeks cash and futures trade develops as we should get more activity. We look for volume to confirm price and we saw a lack of that with the Thanksgiving holiday. On the technical side of things, the market managed to find support last week at from 122.40-122.75. This pocket represents the 50-day moving average, an indicator we have not closed below since the first week in September. More importantly, this represents previous resistance in May, June, and the first half of October. On October 24th the market broke out above this level which invited momentum traders into the market to extend the rally to 131.95 in just 9 sessions. On the chart, there has been damage done over the last three weeks, but the bulls remain in control as the market has managed to mark higher lows for the time being. The RSI (relative strength index) has come well off of its overbought levels and is currently a hair above 48 which is about as neutral as it gets. The weekly Commitment of Traders report has been delayed until Monday (due to the holiday). Last weeks commitment of traders report showed that funds held 131,830 long positions. Although that number is likely shrunk some, there is thought to still be a good sized net long position in place.

Lean Hogs

February lean hogs finished Fridays session up .575 to 69.675, trading in a range of .825 on the day. Talk of higher weights and ample supply will continue to be a concern as we look to the last month of the year. Weekly average weights were down slightly from the previous weeks (why we saw a modest recovery) but we are still up 1.4% from the previous year. On top of that, slaughter numbers could come in 3-4% above last year in the coming weeks. On the technical side of things, the market found tremendous support from 66.20-66.90. This pocket represents the 100 and 200 day moving average, along with the 50% retracement (middle of the range) from the August 30th lows to the November 1st highs. The market has been posting lower highs and lower lows since that peak on November 1st which puts the bears in control in the near term. Technical resistance comes in from 70.28-70.675.

If you have any questions with regards to markets, trading, or opening an account please let me know!

Sign up for a FREE trial of the Morning Express!

Email Oliver@BlueLineFutures.com or AgHedging@BlueLineFutures.com

You can also reach us at 312-278-0500

Follow us on Twitter:@BlueLineFutures

Follow us on Facebook:Blue Line Futures Facebook page

Subscribe to our YouTube channel:Blue Line Futures YouTube channel


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.



Recent articles from this author



About the author


Oliver Sloup is Vice President of Blue Line Futures, a leading futures and commodities brokerage firm located at the Chicago Board of Trade. Blue Line Futures mission is to put the customer first, and that means bringing YOU the best customer service, consistent and reliable research and state of the art technology.  Oliver has been a guest on CNBC and Bloomberg, among others.  Oliver has over a decade of trading experience. Prior to Blue Line Futures, Oliver worked as the Director of Managed Futures at iiTRADER.

 

 

Contributing author since 10/6/17 

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Legal  •   Privacy Statement