BrokersEDGE Futures News Livestock Market recap 1-4-18

Cattle Commentary: Cattle futures were both sides of unchanged today, starting the morning session with an attempted breakout which led to an ultimate failure by the end of the day. February live cattle futures finished down .85 at 122.10, trading in a range of 1.525 on the session. As mentioned yesterday, funds are starting to roll some and volume is picking up in April, which finished down .725 at 123.65. March feeders finished the day down 1.725 at 145.10, trading in a range of 3.525. spreads are wide with bids at 121 and offers at 126. There was a small reginal that payed 125 in the north today, that is two over the bulk of last week’s trade. As mentioned in yesterday’s report, futures prices are opportunistic for hedgers and speculators. Boxed beef was up again today.

PM Boxed BeefChoiceSelect

Current Cutout Values: – 208.67 – 200.86

Change from prior day: – .05 – 1.70

Choice/Select spread: – 7.81

Cattle Technicals

Live Cattle (February)

February live cattle attempted to break out of our major resistance pocket from 123.35-123.80 for the third session in a row. If you’ve been reading our reports you know that this represents a key Fibonacci retracement from the August lows to November highs, the 50-day moving average, and more importantly a breakout point from October 24th and a breakdown point from December 1st. The inability to breakout led to long liquidation from funds which opens the door to our target of 120.20-120.70. This represents the middle of the range from the August lows to the November highs, as well as the 100-day moving average. If this holds it will set the bulls up in a good spot, marking higher lows with potential higher highs to follow.

Resistance: 123.35-123.80****, 126.65**, 131.95**

Support: 120.20-120.70**, 119.85***, 118.05-118.15**


Feeder Cattle (March)

March feeder cattle looked destined to test resistance from 149.10-149.40 but ran out of gas in the afternoon, posting a high of 148.55. The inability to sustain momentum gave funds an excellent opportunity to liquidate some long positions after climbing 9.95 in the last 7 sessions. We think this liquidation could continue to fill the gap from 143.05-143.55. that pocket needs to hold on a closing basis to encourage a firm trade going forward. A failure could lead to a retest of the 200-day moving average which now comes in just shy of 140.

Resistance: 146.45-146.95**, 149.10-149.40***, 153.175-154.05***

Support: 143.05-143.55***, 139.85**, 138.30-138.75****


Lean Hog Commentary & Technicals

Lean hog futures traded both sides of unchanged today, with February futures finishing up .45 at 71.50, trading in a range of .975. Prices remain at the top end of the range with first resistance coming in from 72.25-72.45, above that is contract highs at 73.30. We continue to believe that there is limited near term value at these prices and a failure to breakout will lead to long liquidation. A breakdown and close below support from 70.20-70.30 opens the door to accelerated selling, pressing prices back to the bottom end of the range which comes in from 66.70-67.05. This pocket represents the middle of the range from the August lows to the November highs, as well as the 200-day moving average. A hair above that is the 100-day moving average which comes in at 67.40

Resistance: 72.25-72.45***, 73.30****, 74.50-75**

Support: 70.20-70.30**, 68.30-68.475***, 66.70-67.05****


For more information please contact DAW Trading at or at 877-329-0006 and visit us at


Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. DAW Trading (“DAW”) uses various outside sources for research material regarding futures and options on futures trading therefore the views and opinions expressed in this letter may not necessarily reflect the view of DAW or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to DAW.

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