Livestock: Escalator Up 📈 Elevator Down 🔻

Research Posts Livestock Round Up

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Cattle markets have come under fire over the last several sessions as long liquidation from Funds has pressured prices back to levels not seen since June. Is the market nearing a bottom or is there more selling to come?

Live Cattle

Technicals (December – Z)

Expanded limits for 10/24/2023: 10.00

Live cattle got hit hard in yesterday’s trade which gives us expanded limits for today’s trade, $10.00.  Yesterday’s move lower started with Friday’s Bearish cattle on feed report.  On top of that there was a well-known hedge fund manager who noted that the economy is slowing a lot faster than data suggests (not surprising), but none the less that may have added a spark for fund managers to liquidate longs.  Long liquidation is something we’ve been nervous about in this market for many months and yesterday provides an example of what a narrow exit door in the cattle market looks like.   So what does today hold?  TBD.  But you can expect volatility to remain elevated as yesterday’s trade may have morphed into an emotional one where outside forces like risk-departments stepping in also play a role. 

Resistance: 182.00-182.50***

Pivot:  180.35

Support: 175.85-176.55***, 172.80-172.90**

Seasonal Tendencies

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

*Past performance is not necessarily indicative of futures results.

Feeder Cattle

Technicals (January – F)

Expanded limits for 10/24/2023: 12.25

Escalator up, elevator down is an old saying that has shown life over the last week in the feeder cattle market as extensive selling pressure has taken prices to levels not seen since June.  The selling has taken the RSI (relative strength index) to 21, a new low for the January contract.  Today’s session will undoubtedly be a rollercoaster ride so be sure to keep your arms and legs inside the ride at all times.   

Resistance: 242.32-243.05***, 246.42

Pivot: 239-240

Support: 233.37-234.95***, 229.00-229.50**

Seasonal Tendencies 

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

*Past performance is not necessarily indicative of futures results.

Lean Hogs

Technicals (December – Z)

December lean hog futures were able to hold ground and consolidate in yesterday’s trade.  The Bulls want to see a close back above 67.32-67.80 to start to neutralize some of the technical damage that has been done over the last few weeks. 

Resistance: 70.775-70.90**, 74.00-74.500***

Pivot: 67.32-67.80 

Support: 65.40-65.67**

Seasonal Tendencies 

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

*Past performance is not necessarily indicative of futures results.


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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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