Commentary:
CATTLE
The Live market under considerable pressure again today. The cutout values declining considerablly in the last 10 days. There are concerns that are real that the slaughter will continue to slow. The numbers for the week prove this is grounded in reality. The shutting of the JBS plant is of concern as well and falls in line with the trend. The futures followed through to the down side as I suggested could happen. The tech in live is below the 14,21 MA. However, recent lows have held. Look for those lows to be tested. If they hold the market has some room until it becomes a buy. If the market takes out recent lows look for further weakness to accelerate. The Feeder market, like Live, followed through to the down side. The feeder market cash is off 8$ from a week ago. The expectation is for further weakness potentially. The tech follows the live, well bellow the 14,21 MA, but above recent lows.
HOGS
There remains little to be said about Hogs that I have not said. The overall meat production is weighing. The hog numbers are too plentiful regardless of the Chinese demand. The tech today followed through as I said should. The market is in free fall and well below the 14,21 MA. Look for a bit more down until the market finds support. The 2016 lows should be challenged. Patience now and time.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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