Opportunity In June And August Live Cattle Futures

Meats Market Update

Meats Market Update

Livestock Futures Commentary

Live Cattle

Cash trade started to pick up yesterday, the bulk of it coming in near 113 in KS & TX. The market managed to rally on the back of this news as market participants seemed relieved that it wasn’t lower. We continue to believe there is a great opportunity in June and August futures, but are aware that the outside markets are having a significant influence on near term price action. We like holding a core long position in those months while being nimbler on additional contracts. Due to the volatility, many of the technicals become less meaningful, we will have them back in the reports as soon as they re-calibrate a bit. 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

We are less optimistic about feeder cattle (compared to live cattle). Outside markets are having a meaningful effect on near term price action and that should not be ignored. Grain futures have rallied over the last week which may also provide a headwind in the near term. We are working with hedgers to sell rallies in the deferreds, even if it’s just for overnight protection. Due to the volatility, many of the technicals become less meaningful, we will have them back in the reports as soon as they re-calibrate a bit.

 

Lean Hogs

April lean hogs managed to gain some ground back yesterday but remain in the middle of the recent risk range. We think that we could see futures work back to the 70 handle, but also believe there are better near term opportunities in other markets. Due to the volatility, many of the technicals become less meaningful, we will have them back in the reports as soon as they re-calibrate a bit. 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.

 

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