Live Cattle
On Wednesday June 20, 2018 the August Live Cattle contract opened at 106.50, traded to the low at 106.10 and then broke out to a new high for the move, trading up to 107.625, just above resistance at 107.35. It backed off the high and settled at 106.65. A continuation to the upside could see price test resistance at 108.65. A break down below the low could see price test support at 104.85. Negotiated cash trade on Wednesday was mostly inactive on light demand in all major feeding regions. Wednesday afternoon boxed beef cutout values were lower on light to moderate demand and heavy offerings. Choice was down 1.41 at 218.29 with Select down 1.25 to close at 201.05 on 165 loads. The choice/ select spread narrowed to 17.24. The hide and offal value from a typical slaughter steer for today was estimated at 9.70 per cwt live, up 0.09 when compared to Tuesday’s value. Estimated cattle slaughter for today is 119,000, last week 114,000 and a year ago 117,000.
Feeder Cattle
The August Feeder Cattle contract opened at 147.775, traded past resistance at 149.975, made a new high (150.75) for the up move then retreated, trading down to the session low at 148.60. It settled at 149.425. A break down below the low could see price test support at the 200 DMA (147.025). A rally from settlement could see resistance tested at 150.90 and then the 151.95 high from February 5th. Resistance then comes in at 152.30.
Lean Hogs
The August Lean Hogs contract opened below the 77.80 resistance level level at 77.50, touched resistance and fell sharply. It traded down limit, making the low at 74.725. It settled at 75.15. A continuation to the downside could see price test support at the 100 DMA (73.90). Support then comes in at 72.875. If the 100 DMA holds, price could consolidate within the Wednesday range.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 21st 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.