Long Liquidation Pressures Cattle Futures
Posted: July 25, 2023, 9:29 a.m.
Live Cattle |
|
Technicals (October- V) October live cattle got hit hard yesterday, finishing the day 1.60 lower to settle at the lowest price in about two weeks. The pullback took prices right back to our first support pocket, 176.65-180.175. Pressure came on the back of long liquidation following a bearish cattle on feed report on Friday. Long liquidation risk continues to be one of our biggest concerns that continues to temper our expectations. If the Bulls fail to defend support through today's session, we could see the selling accelerate with the next support pocket coming in from 176.20-177.25. Resistance: 184.35**, 185.75*** Support: 179.65-180.175***, 176.20-177.25****, 174.80** |
 |
Feeder Cattle |
|
Technicals (October - V) October feeder cattle gaped lower in yesterday's trade, which shouldn't have been all that surprising considering Friday's report and the surging corn prices. What was surprising was the fact that feeders were able to claw back into positive territory midday, only to be sold off again into the afternoon. Our first support pocket held firm yesterday; we outlined that in recent reports as 247.40-247.75. A failure to defend this pocket on a closing basis could trigger additional pressure. Potential downside targets are the 50-day moving average near 244.10 and the June 27th gap at 242.00. With all of that bearish content in mind, grains are weaker which may be supportive to prices on the open. Resistance: 252.60-253.00***, 254.20**, 256.00** Support: 247.40-247.75***, 246.025**, 243.75*** |
 |
Lean HogsTechnicals (October - V) October lean hog futures failed to get anything going in yesterday's trade. The break below Friday's low led to additional long liquidation. Support from 80.55-81.50 will continue to be watched closely. A failure to defend this pocket could keep the pressure on. The Bulls want to see a close back above our pivot point at 83.55 to keep the Bulls in the driver's seat. Resistance: 85.50-86.40****, 87.77-88.32***, 89.12-90.00** Pivot: 83.55 Support: 80.55-81.50***, 78.45** |
 |
In case you haven't already, you can sign up for a complimentary 2-week trial of our complete research packet, Blue Line Express.
Sign up for a Free Trial
Start Trading with Blue Line Futures
Don't have an account with Blue Line Futures?
Futures trading involves 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 identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Like this post? Share it below:
Back to Insights
In case you haven't already, you can sign up for a complimentary 2-week trial of our complete research packet, Blue Line Express.
Free Trial