Live Cattle
The October Live Cattle contract was slammed at the open on Wednesday, August 9, 2017, and then traded down to test support at 108.675, making the early low at 108.625. It spent the next 3 hours consolidating at the low before breaking down and nearly going down limit. The low for the day is 107.875 and the session ended slightly higher at 108.075. Support is at 107.60, 106.00 and 104.85. Resistance is at 108.675, 109.825 and 110.80. The fedcattleexchange auction on Wednesday morning had 1,659 head for sale, with 518 sold. Prices traded at 114.00 for 17 – 30 day delivery, 114.50 for 1 – 17 day delivery and 115.00 – 115.50 for 1 – 9 day delivery. The negotiated cash market was open for business today with trading taking place at mostly 115.00 for live sales and 185.00 for dressed. Wednesday afternoon boxed beef cutout values were lower on Choice and Select on light to moderate demand and moderate offerings. Choice was down .59 at 201.66 and Select down 0.25 to close at 196.61 on 148 loads. The choice/ select spread narrowed to 5.05. The estimated cattle slaughter for Monday was reported at 116,000.
Feeder Cattle
The September Feeder Cattle contract broke down hard and went limit down on Wednesday, trading to 142.15. This just above 141.20 support and breaking down from here could see the June 20th low (140.775) tested and then a plunge to 138.95 is possible. Resistance is at 143.50 and then 144.65.
Lean Hogs
The October Lean Hogs contract retested the 200 DMA (68.85), reaching 68.75 and retested the 67.90 support level, trading down to 67.725. It ended the session at 68.225. It was another uneventful day with a small range and it formed and inside candle.. A break out above the Wednesday high could lead to a test of resistance at 69.90. Trading below the low could see a test of support at 66.75.
For those interested I hold a weekly livestock webinar on Friday, August 11 at 3:00pm. 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.