The June Live Cattle market gap opened lower, recovered and closed the gap then broke down, making the session low at the end of the trading session. The rally took price up to the 122.825 key level, with the high just below it at 122.80. The session low was 120.825 just above support at 120.75. It settled at 121.125. A failure from settlement could lead to a test of support at 119.15. A recovery has resistance at 122.825 and then 124.30.
On Friday in the Southern Plains, Nebraska and Western Cornbelt trade and demand moderate. Compared to last week in the Southern Plains, live cash trades 1.00 higher at 128.00. Compared to the prior week in NE live cash trades 2.00 higher at 129.00 and dressed 4.00 higher at 208.00, few up to 209.00. Compared to the previous week in the Western Cornbelt live cash trades moved 3.00 higher at 129.00 to 131.00 and dressed 2.00 to 5.00 higher mostly at 208.00. For Friday in Colorado trade moderate with light to moderate demand. Compared to last week live cash trades moved 2.00 higher at 129.00. Boxed beef cutouts were steady with choice down 0.09 to 229.00 and select up 0.09 to 218.73. There was moderate demand and moderate to heavy offerings. There were 109 loads. The choice/ select spread dipped to 10.27. Slaughter for Monday came in at 119,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 28st 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.