Live Cattle (February)
February live cattle finished today’s session in the red, but well off the opening lows at 125.025. Last week’s cash cattle continued to march higher, selling as high as 120 in the north. The cash trade has been straight fire and has exceeded our expectations, in terms of firming up week after week after week without hesitation. Though the path of least resistance is higher, we are not sure that it is sustainable. Technical resistance comes in from last week’s highs, 126.925-127.15, above here is uncharted territory. On the support side of things, 123.125-123.40 was our pocket that was tested and held on the 22nd of November, which remains intact. A close below there opens the door for a run towards 120. Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed to you each day.
Feeder Cattle (January)
January feeder cattle rolled over on the open, trading as low as 140.35. The bulls managed to find their footing, rallying prices back near unchanged into the close (last trade 142.225). Resistance comes in from 143.65-144.00, a failure here would mark lower highs and potentially take us to lower lows. It would also start to look like a bearish head and shoulders formation. First support comes in from 140.35-140.75, a break and close below here takes us to retest the November 22nd lows and 100-day moving average, 138.075-138.275.
Lean Hogs (February)
February lean hogs gave back Friday’s gains as prices retreated to their lowest level since August 7th, holding on to our technical support pocket which we had defined as 65.45-55.05. If the bulls cannot find their footing, it is possible we see a retest of the August 5th lows, 63.675. There is a seasonal that starts today for the June contract, it is as follows: Selling June hogs on December 1st and buying them back on the 17th; this has been profitable for 13 of the last 15 years with the average gain being about 1.75, or $700. Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed to you each day.
Resistance: 69.875-70.17574.15-74.55***, 75.975-76.625****
Support: 65.45-66.05***, 63.675**