Live cattle futures were limit down today, even with expanded limits. Expand limits remain in affect for tomorrows trading session. September feeder cattle was the only contract of feeders to take full advantage of expanded limits. The money flow in the Ag space has been extremely negative, with grains and cattle taking heat. This has likely helped spur forced liquidation (margin selling) and add to the pressure weve seen. In this type of environment technicals go out the window, this is an emotional/irrational trading environment. There will be phenomenal short-term opportunities, likely at some point this week, but thats not to say we are near a bottom. Expect volatility to remain high. This afternoon daily slaughter came in at 116,000, only 2,000 less than last week.
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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.