Live Cattle Fundamental and Technical Update
Monday’s Slaughter is estimated at 125,000. Unchanged from last week, but 8,000 more than the same week last year.
Monday’s Cutout Values
Choice: 270.54, Down .78 from the previous day.
Select: 247.45, Down 1.44 from the previous day.
Choice/Select Spread: 23.09
5 Area Average Cattle Price
Live Steer: 140.14
Live Heifer: 138.35
Dressed Steer: 226.03
Dressed Heifer: 225.95
Live Cattle
Technicals (August): August live cattle got taken to the woodshed yesterday, along with nearly every other market out there as a risk-off sentiment fed on itself ahead of this week’s Federal Reserve meeting where the chances of a .75 rate hike went from 25% to 94% over the span of one trading session. As painful as yesterday may have been, it prices in the bearishness that comes with a more rapid rate increase and leaves room for outside markets to rally if the Fed only comes in with a .50 hike. If the Fed hiked rates a full point, that would obviously be another story. Needless to say, outside market money flow and sentiment will be a key catalyst through tomorrow’s Fed meeting.
Resistance: 136.025-136.625***, 137.90-137.95**, 138.75**, 140.275**
Pivot: 135.10-135.475
Support: 134.40-135.10***, 132.45-132.775**, 129.975-130.725****
Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.
Monday’s Cutout Values
Choice: 270.54, Down .78 from the previous day.
Select: 247.45, Down 1.44 from the previous day.
Choice/Select Spread: 23.09
5 Area Average Cattle Price
Live Steer: 140.14
Live Heifer: 138.35
Dressed Steer: 226.03
Dressed Heifer: 225.95
Live Cattle
Technicals (August): August live cattle got taken to the woodshed yesterday, along with nearly every other market out there as a risk-off sentiment fed on itself ahead of this week’s Federal Reserve meeting where the chances of a .75 rate hike went from 25% to 94% over the span of one trading session. As painful as yesterday may have been, it prices in the bearishness that comes with a more rapid rate increase and leaves room for outside markets to rally if the Fed only comes in with a .50 hike. If the Fed hiked rates a full point, that would obviously be another story. Needless to say, outside market money flow and sentiment will be a key catalyst through tomorrow’s Fed meeting.
Resistance: 136.025-136.625***, 137.90-137.95**, 138.75**, 140.275**
Pivot: 135.10-135.475
Support: 134.40-135.10***, 132.45-132.775**, 129.975-130.725****
Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.