Are Cattle Futures Ready to Rally?

Research Posts Livestock Round Up

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Will cattle futures respond favorably to last Friday’s Cattle on Feed report?

Live Cattle

Technicals (February – G)

There was some concern last week that we could see another bearish surprise in the monthly Cattle on Feed report.  Going into the report, we thought that a neutral report could have a bullish reaction.  This report was a hair more friendly than neutral; we will soon find out if the market does in fact see this is bullish. If the Bulls can chew through our pivot pocket from 180.325-181.00, we could see the buying accelerate prices higher. 

Resistance: 182.00-182.50**, 184.625 -185.00**, 186.275**

Pivot: 180.325-181.00 

Support: 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 chopped around and consolidated last week as market participants trade more cautiously with the uptick in volatility over the last month +.  Resistance to start the week comes in from 230.70-231.42.   If the Bulls can clear this hurdle, we could see an extension of the recovery towards 233.37-234.95.

Resistance: 230.70-231.42***, 233.37-234.95***

Pivot:  227.425 

Support: 223.625**

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 hogs finished the week just a hair below the low end of our pivot pocket which we’ve outlined as 70.00-70.25.  A failure to defend this pocket to start the week could keep pressure on with the next support pocket not coming in until 67.32-67.80.

Resistance:  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. 

Oliver Sloup, VP & Co-Founder, Blue Line Futures

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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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