Livestock Update

John WalshGeneral Commentary, Livestock

Commentary:

LIVE CATTLE

The cattle opened lower today. The close was locked limit. Look for follow through. The expanded limits after yesterdays close did not help. The talk of discount to cash means little to the market. It should be remembered that it has rarely of late. The weights remain high during a difficult time. The consumer is spent after restocking. This sounds like a broken record from yesterday but the fundamental picture is tied to the reality. The issue the Live market has is the recent lack of interest in the Feeder market. This could force lower liquidation. The technical action today put LC back below the 14,21 MA.

FEEDER CATTLE

The feeder market is fueled today by the wholesale beef prices in retreat. The retail demand in retreat. The Oklahoma City Feeder Auction showed sales off $4-$10 this week. This could be the near term trend. The technical action in FC traded back below the 14,21 day MA.

HOGS

The hogs, like beef, locked limit. As mentioned yesterday the fundamentals and the technicals all are pointing lower. The demand story has turned to oversupply and the question is what is enough decline. The overall cash prices are weak . The cutout price are monthly lows. The near term trend looks to be lower. There are recent developments in China that indicate the ASF is back and of concern. This is a tough thought as some of this advanced pork production has put the producer in the position we sit today. The tech for hogs remains extended down well below the 14,21 MA. This indicates the tech does not offer any thoughts for support at present.

Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –

BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
jwalsh@walshtrading.com
www.walshtrading.com

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.​

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.​

All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.