Livestock Markets Ended Q3 with a Choppy Trade

Research Posts Livestock Round Up

/ by nawadblueline | Leave a comment

Last week was choppy for the livestock markets.  Will a new month and a new quarter give the markets more clarity?

Live Cattle

Technicals (December – Z)

December live cattle were on a rollercoaster ride last week, much of which was likely in part due to end of quarter positioning.  Friday’s Commitment of Traders report showed Managed Money (aka Funds) holding a net long position of 101,860 futures/options contracts, little changed from the previous week.  It’s important to note that weekly CoT data is through September 26th, so it doesn’t include the back half of the week.  187.25-187.72 is the pocket we will be keeping a very close eye on through today’s trade.  As you can see in the chart below, this has been an inflection point for the market dating back to July. 

Resistance: 190.17***, 191.50-192.05***

Pivot:  187.25-187.72

Support: 186.00-186.27***, 183.40-184.10**

Seasonal Tendencies

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

Feeder Cattle

Technicals (November – X)

November feeder cattle futures have been under pressure over the last two weeks which has taken prices back to some important technical levels. 253.50-255.00 Has been an important pocket for the market dating back to July where it acted as resistance.  It is now acting as support coupled with trendline support coming in just underneath it.  If support gives way, it could spark additional long liquidation with the next support pocket coming in closer to 248.Friday’s Commitment of Traders report showed Funds holding a net long position of 12,563 futures/options contracts. 

Resistance: 262.07*

Pivot: 253.50-255.00

Support: 252.90***, 250.10**, 246.70-247.72***

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

Lean Hogs

Technicals (December – Z)

December lean hogs have been volatile over the last few weeks, but it has done little to change the technical landscape as the market remains mostly rangebound. 

Resistance: 77.70-78.10*** 

Pivot: 74.50-74.60

Support: 70.775-70.90***

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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