Is Relief Rally in Cattle Coming to an End?

Research Posts Livestock Round Up

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Live Cattle

Technicals (December – Z)

December live cattle futures traded on both sides of unchanged on Friday but ultimately finished the day lower.  All in all, there wasn’t any technical damage done though as prices remain stuck in the old gap from October 23rd. If the Bulls can chew through and close above last week’s high, we could see a continuation of the relief rally towards the 50-day moving average, 186.27.  We are leaning towards the Bearish side at these levels.

Friday’s Commitment of Traders report showed continue long liquidation with the Managed Money net long position now at 56,402 futures and options contracts, the smallest net long position since last November. 

Resistance: 186.275**

Pivot: 184.625 -185.00 

Support: 182.00-182.50***, 175.85-176.55***

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)

 January feeder cattle futures had a strong rally on Thursday but fell flat on Friday as the market struggled in our resistance pocket from 242.32-243.05.  This pocket represents the gap from October 23rd.  If the Bulls can chew through and close above this pocket, we could see additional relief propel prices higher.  A failure keeps the Bears in control of the near-term chart. 

Friday’s Commitment of Traders report showed Managed Money holding a net long position of 735 futures and options contracts, the smallest position since February.  

Resistance: 242.32-243.05***, 244.65**, 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 rallied up near the 100-day moving average on Friday but fell flat and retreated to finish the day 1.52 lower, which happened to be near the 50-day moving average.  We expect the choppiness to continue which could present some good shorter term opportuniteis on both sides of the market. 

Resistance: 71.92-72.10***, 74.00-74.500***

Pivot: 70.00-70.25 

Support: 67.32-67.80***, 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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