Live Cattle
On Wednesday July 25, 2018 the October Live Cattle contract continued its trade between the 110.80 resistance level and the 108.85 support level. The range was 110.90 high to 109.575 low. It settled at 110.775. In the after-settlement trade from 1pm – 1:05 pm price jumped to a new high for the session and the up move at 111.25. A rally above the high could lead to a test of resistance at 112.35. Trading below 110.80 could see price test support at 108.65. Negotiated cash trade on Wednesday was at a standstill in all major feeding regions. Wednesday afternoon boxed beef cutout values were steady to weak on light to moderate demand and heavy offerings. Choice was down 0.01 at 204.64 with Select down 0.37 to close at 197.58 on 171 loads. The choice/ select spread widened to 7.06. The hide and offal value from a typical slaughter steer for today was estimated at 9.14 per cwt live, down 0.03 when compared to Tuesday’s value. Estimated cattle slaughter for today is 119,000.
Feeder Cattle
The August Feeder Cattle contract tested support at 151.55, trading to the session low at 151.85 and then a late session rally took price to just below the session high (153.125) and settling at 152.825. It formed a Doji candle, indicating indecision on the test of support and a rally above the high could see price test resistance at 153.50 and then 154.25. Trading below 152.30 could see price retest support at 151.55, 150.90 and then 149.975.
Lean Hogs
The October Lean Hogs contract traded within the Tuesday range, once again testing resistance at 53.80 making the high at 54.10. It settled above resistance at 53.925. A rally above settlement could lead to a test of resistance 55.475. A breakdown below 53.80 could see price test support at 51.80.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, July 27th at 3:00 pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109,
www.walshtrading.com
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.