BROKERSEDGE

PROPRIETARY NEWSLETTER

Cattle market news – BrokersEDGE 2-15-18

Cattle Commentary: Cattle finished the day stronger despite the lack of new news on the wire. April fats finished the session up 2.05 at 127.275, trading in a range of 2.20. March feeders finished the session up 1.725 at 149.90, trading in a range of 2.18. Cash cattle continues to be non-existent, if we don’t see anything develop by the afternoon tomorrow bulls will likely be feeling pretty comfortable going into a three-day weekend. Our bias remains bullish with an objective of contract highs. Obviously, cash developments and outside market volatility could throw a wrench into that, so we remain nimble. Boxed beef finished the day stronger.

PM Boxed Beef / Choice / Select

Current Cutout Values: / 209.04/ 205.14

Change from prior day: /1.23/ 1.63

Choice/Select spread: / 3.90

 

Cattle Technicals

Live Cattle (April)

April live cattle finally caught the bid we were looking for today, breaking out above our resistance pocket from 126.125-126.30, this opened the door to our next pocket that we have had listed as 127.20-127.35. Previous resistance now becomes first support. We continue to believe that the market will make a run at the contract highs from November 6th, this comes in at 130.10. If the bulls cannot take advantage of price action and prices dip back below 126.125, look for another leg lower towards 122.50-123.30. The RSI (relative strength index) is showing 63, the most overbought levels since November.

Resistance: 127.20-127.35**, 130.10****

Support: 126.125-126.30****, 122.45-123.25***, 120.20-120.625****

 

Feeder Cattle (March)

March feeder cattle managed to feed off of yesterday’s momentum posting a high of 150.125 and testing the next line of resistance which we had listed in yesterday’s report as 150.25. If the bulls can chew through this level, then we would expect to see 152. We continue to believe there is a lot of strength left in this market and a run at contract highs would not be out of the question. On the flip side, previous resistance now comes in as first support, that comes in from 148.35-148.65.

Resistance: 150.25**, 151.60-151.95***, 153.95***, 158.925****

Support: 148.35-148.65**, 146.45-146.75**, 145.05-145.525**

 

Lean Hog Commentary and Technicals (April)

April lean hog futures made a run at technical resistance which we had listed in yesterday’s report from 71.15-71.35, the market failed to attract new buyers which invited the sellers back into the market. April futures finished the session down .95 at 69.70, trading in a range of 1.625 on the session. Though there is probably intermediate term value here the market may continue to overextend itself on the down side. 67.91 is the “last line of defense” a break and close below could accelerate the selling pressure down towards the 65 level.

Resistance: 71.15-71.35***, 72.55**, 73.10-73.60***

Support: 67.75-68.00****, 64.85-65.05***

 

For more information please contact DAW Trading at brokersedge@dawtradingdiv.com or at 877-329-0006 and visit us at https://dawtradingdiv.com/brokers-edge/

Disclaimer:

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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