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Cattle Commentary:Cash cattle continued to come in today with the bulk of it at 126 aside from a few whispers of a few 127 and 128; dressed has been reported from 203-204. The steady cash trade wasnt expected to rally the market, but many bulls were hoping to see it at least offer support which hasnt been the case. Packers will need additional purchases and a lot of the offers are still resting at 128. Todays futures action was exactly what the bulls had been fearing (see technicals below). Boxed beef continued to climb today with select out gaining on choice which narrowed the spread.
PM Boxed Beef / Choice / Select
Current Cutout Values: / 223.88/ 216.78
Change from prior day: /.31 / 1.58
Choice/Select spread: / 7.10
Live Cattle (April)
The technical minefield was finally triggered today which led the way to accelerated selling pressure via long liquidation from the funds. We saw April futures mark their lowest price in nearly two months when the traded down as much as 2.225. The market managed to clos well off the lows, but the technical damage continues to mount for the bulls. If the market cannot reclaim ground above 122.55 to round out the week, we would expect to see a run at....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Feeder Cattle (March)
Todays test of support opened the flood gates to additional selling pressure as lower prices fed on lower prices. We often compare technical and price to a sky scrapper and a wrecking ball (respectively). The more times a level is tested, the weaker it becomes. The market finished off the lows, but the bears have a strong hold on the market. The next significant support pocket we see comes in from....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Lean Hog Commentary and Technicals (April)
Lean hogs had an inside day which means they traded within the previous days range. April futures finished the session up .225 at 68.025, trading in a range of 1.55. We would not be surprised to see this translate into a consolidation trade as we round out the week. The bears do remain in control on the chart and are looking for a retest of....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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