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The Bull Run Continues in Livestock Markets!

Livestock Round Up

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Live cattle, feeder cattle, and lean hogs have all had an impressive rally. Despite signs over the markets being overbought, they continue to grind higher. Is there much more upside left?


Feeder Cattle (November)
This is going to sound repetitive as it’s very similar to live cattle, for that we apologize. November feeder cattle futures made another new closing high for the move in yesterday’s trade, taking the RSI deeper into overbought territory. With that said, resistance remains intact from 249.85-250.80 (yesterday’s high was 250.725). If the Bulls can keep the momentum rolling upward and achieve a close above the top end of resistance, we could see another leg higher to 253.075-253.90. We lean a little more cautious on the Feeder Cattle side of things here in the near term.

  • Resistance: 249.85-250.80*, 253.075-253.90
  • Pivot: 245.90-246.50
  • Support: 242.75-243.45, 239.62-240.15


Lean Hogs (December)
Like live cattle and feeder cattle, December lean hogs posted a new high close for the move which takes prices back to levels not seen since May. First resistance remains intact at 77.72. If the Bulls can chew through and close above that pocket one could look for an extension of the rally with the next major resistance pocket coming in from 78.70-78.97. If you need to protect price, we feel this is a great opportunity to do so. The CME CVOL index is near “normal” levels, so options may be a way to play it with limited risk.

  • Resistance: 77.72, 78.70-78.97*
  • Pivot: 75.25-76.00
  • Support: 73.85-74.07, 72.00-72.85*

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Futures trading involves a 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 your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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