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PROPRIETARY NEWSLETTER

live and feeder cattle futures news and research – BrokersEDGE – 3-7-19

Published Mar-07-2019

Kervin Olson’s cattle herd includes Angus with black Simmental and red Angus they cross with Charolais crosses. With low corn and soybean prices at break-even levels this year, the cattle and strong beef prices may be the primary cash crop, Olson says. Photo taken Sept. 9, 2015, near Amherst, S.D. (Forum News Service/Agweek/Mikkel Pates)(Embargo to Sept. 22, 2015, 1 a.m.)


Live Cattle (April)
Today’s tight ranging trade did little to change the technical landscape. Trend line support is drifting higher each day, offering support to the market. That trend line will come in tomorrow near 128.40, shifting our support pocket up to 128.00-128.40. On the resistance side of things, first resistance comes in from 129.475-129.65. This pocket represents previous contract highs along with other previously important price points. A close above here will likely take us to new contract highs, above 130.45.
Resistance: 129.475-129.65***, 130.45-131.00**, 134.55****
Support: 128.00-128.40***, 126.60-127.25**
Feeder Cattle (April)
Feeder cattle extended losses today making it 5 consecutive days of lower prices, the longest losing streak we see for the April contract. Coming in to the week the chart was looking constructive, but the first three days of this week have done some damage. With that said, we would rather be buyers than sellers at these levels. If the bulls cannot gain traction tomorrow, we would likely look at moving to the sidelines for better prices. A failure to find relief tomorrow would open the door for risk down to 141.30, the lows from December.
Resistance: 144.50-144.95***, 146.10-146.375**, 147.80-147.825****
Support: 142.60-142.90**, 140.35-141.30****

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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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