The August Lean Hogs contract consolidated around the 80.45 key level. It made its high at 81.75 and the low at 79.625. It settled at 80.10. A break out above the high could see price retest the July 10th high at 82.85. A failure from settlement could see price test the 79.075 – 79.10 gap and then the rising 13 DMA at 78.48. The Lean Hog Index ticked higher and is at 70.73 as of July 11th. The pork cutout index dipped to 72.34 as of July 12th.
August Live Cattle eked out a new high for the up move at 108.975. It settled at 108.50. This is right at the 108.65 resistance level that cattle has been testing for the past week. It also traded towards the 107.30 support level making the low at 107.575. If cattle can take out 108.65 a run to resistance at 110.80 is likely. Resistance then comes in at 112.35. A failure from settlement could see price revisit the 107.30 support level and then move towards support at 106.025. The cash market was quiet. Boxed beef cutouts were mixed as choice cutouts were up 0.47 to 213.27 and select was down 0.39 to 189.21 on light to moderate demand and heavy offerings. The choice/ select spread widened to 24.06 and the load count was 143. Slaughter was 117,000.
August Feeder Cattle consolidated between support at 140.775 making the low of the day just below it at 140.35 and resistance at 142.40. It made the high at 142.225 and settled at 141.65. Resistance is at 142.40 and 143.50. The high for the up move is at 143.75. The 100 DMA is at 144.67. Support is at 140.775 and the declining 50 DMA at 139.72. The Feeder Cattle Index declined to 140.46 as of July 12th.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, July 18th 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.
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Senior Market Strategist
Walsh Trading, Inc.
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.