Soybeans Break Below Support and Cattle Give Back Gains

Transcript

Good afternoon. This is all over slow blue line features coming to you from the Chicago Board of Trade with another episode of the two minute drill. Before we get into the charts, I do want to remind you, if you have not already tried out a free trial of our daily Commodity Research, go to Blue Lion futures.com. And sign up for a free two week trial there. Covered grains and livestock. My colleagues cover some of the outside markets that have really gotten a lot of attention as of late gold, silver, crude oil, s&p, NASDAQ, Bitcoin, et cetera. So if you haven’t tried out a free two week trial, go to Blue Line futures.com, you can select the markets that you want to read about. And if you have any questions over what you’re reading, our trade desk is always available. Now that I got that little plug out of the way we can go ahead and get into the charts. Now I do want to remind you, we do have a USDA report. Tomorrow, April 11. This typically isn’t one of the biggest reports of the year, so I wouldn’t be surprised to see the market traded for a little bit traded briefly. And then it’s back to planting weather in the Midwest, outside markets, technicals, et cetera. So I’m not going to put a whole lot of weight in tomorrow’s report. So the technicals are going to be something we’re focusing on today. Now coming into today’s trade, live and at 1185 was a little bit of what we defined in this morning’s report as a must hold area for the ball camp, we wrote, talking about a breaking close below that could start to accelerate the selling pressure, we did break and close below that the selling pressure didn’t really accelerate is more like a slow bleed lower. But nonetheless, it was a break and close below technical support, which does put the bears back in the driver’s seat into tomorrow’s report 11 at 1185, that’s now going to be resistance. If the bulls can get back out above there, potentially that starts to put the ball back in their court a little bit, but a failure to do that keeps the bears in control. And unfortunately, a retested low end of the range less than 40 1150 Going back to February is really not out of the question. So this is going to be a big pivot pocket to keep a very close eye on into the back half of the week. Now moving over to the next chart that we’ve got, which is also caught a lot of attention as of late June lean hogs. They’ve had a little bit of a waterfall effect here over the last couple of weeks on a couple of different factors. Obviously, the avian flu headline probably triggered more selling than was actually warranted with that headline. But a lot of that was I think the funds have established a very lengthy position here buying a net long position of about 66,000 contracts. I think there were net buyers for about eight consecutive weeks, and to a seasonally bearish time a year where they may be looking to liquidate that long position as it is and then need some headline risk on top of it. And it’s just a rush for the exits that has kind of fulfilled and fed on itself here recently. I think we saw continuation of that today after this morning CPI report came in high that put a little pressure on the outside markets and live cattle just weren’t able to book that outside exposure in today’s trade. Now, I do think we’re coming up into some pretty good support here that on 171 72, I think would probably hold on the first test. With that said and the bear seasonality of June live cattle does continue for the next couple of weeks. So we’re not going to stick our neck out and say that this is a low just yet. But if the bulls can defend 171 72 here in the next couple of weeks, I think that could set up for a good risk reward trade to the buy side. So that’s what we’re looking at for the June live cattle. If you’ve got any questions at all, feel free to reach out on the June live cattle. So that cash market has been holding in very, very well. If that continues to hold on Well, I think that could offer some support and get some buyers back into the market. So that is probably a little bit over two minutes. But that’s what we’re looking at. If you have any questions at all. Feel free to reach out to our trade desk. We’re always available to help. And again if you have not already hit that QR code, go to Blue Line futures.com Subscribe to your free two week trial for daily commentary. We look forward to hearing from you soon. And remember trading futures and options and fall substantial risk of loss and is not suitable for all investors.