Will Outside Market Influence Today's Cattle Trade?
Friday’s Slaughter is estimated at 124,000. 2,000 less than last week, but 5,000 more than the same week last year.
Friday’s Cutout Values
Choice: 271.32, Up .22 from the previous day.
Select: 248.89, Down .72from the previous day.
Choice/Select Spread: 22.43
5 Area Average Cattle Price
Live Steer: 140.52
Live Heifer: 139.41
Dressed Steer: 226.02
Dressed Heifer: 226.00
Live Cattle
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net buyers of 9,265 futures/options contracts, through June 7th. This expands their net long position to 21,350. Broken down, that is 78,753 longs VS 57,403 shorts. In last week's report we noted that this is a historically small position for Managed Money, which could be viewed as Bullish.
Technicals (August): August live cattle failed to get follow through momentum after breaking out above technical resistance on Wednesday. Though the lack of follow through was disappointment for the Bulls (they are probably all used to it by now anyway), there wasn’t any technical damage done on the Thursday/Friday pullback. Previous resistance down near 134.40-135.10 is now significant support. The Bulls must defend this pocket to keep them in control of the technical landscape. On the resistance side of things, 137.90-137.95 is the first hurdle, this was last week’s highs. Above that and we could see the market finally make its way back to the April 25th gap, 138.75-140.275.
Resistance: 137.90-137.95**, 138.75**, 140.275**, 141.625-141.75****
Pivot: 136.65
Support: 134.40-135.10***, 134.40-135.10***
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.
Friday’s Cutout Values
Choice: 271.32, Up .22 from the previous day.
Select: 248.89, Down .72from the previous day.
Choice/Select Spread: 22.43
5 Area Average Cattle Price
Live Steer: 140.52
Live Heifer: 139.41
Dressed Steer: 226.02
Dressed Heifer: 226.00
Live Cattle
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net buyers of 9,265 futures/options contracts, through June 7th. This expands their net long position to 21,350. Broken down, that is 78,753 longs VS 57,403 shorts. In last week's report we noted that this is a historically small position for Managed Money, which could be viewed as Bullish.
Technicals (August): August live cattle failed to get follow through momentum after breaking out above technical resistance on Wednesday. Though the lack of follow through was disappointment for the Bulls (they are probably all used to it by now anyway), there wasn’t any technical damage done on the Thursday/Friday pullback. Previous resistance down near 134.40-135.10 is now significant support. The Bulls must defend this pocket to keep them in control of the technical landscape. On the resistance side of things, 137.90-137.95 is the first hurdle, this was last week’s highs. Above that and we could see the market finally make its way back to the April 25th gap, 138.75-140.275.
Resistance: 137.90-137.95**, 138.75**, 140.275**, 141.625-141.75****
Pivot: 136.65
Support: 134.40-135.10***, 134.40-135.10***
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.
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