Live Cattle
The December Live Cattle contract took over as the lead contract on Thursday, September 21, 2017, as the volume was higher than the October contract. The session range was 116.90 high to 115.575 low, ending at 116.25, forming a Doji candle. It is above the 100 DMA (115.425) and the 200 DMA (115.475). The Doji candle indicates indecision and a trade below the moving averages could lead to a test of support at 114.425. A breakout above the high could see price move towards resistance at 119.25. The negotiated cash market was quiet. Sales this week have taken place between 106.50 and 106.75. We have the cattle on feed report Friday afternoon after the trading session. Thursday afternoon boxed beef cutout values were lower on Choice and Select on light to moderate demand and moderate offerings. Choice was down 0.53 to 191.51 and Select down 0.11 to 188.41 on 139 loads. The choice/ select spread dropped to a plus 3.10. The estimated cattle slaughter for Tuesday was reported at 118,000.
Feeder Cattle
The October Feeder Cattle consolidated near the Wednesday high on Thursday, unable to continue its upward push, ending the day just above support (156.025) at 156.20. A break down below the Thursday low (155.575) could see more consolidation within Wednesday’s range (157.30 – 152.70). Staying above 156.20 could lead to a rest of the Wednesday high and then a move toward resistance at 159.975.
Lean Hogs
The December Lean Hogs contract broke down and traded below the 58.10 support level on Thursday, trading down to the low at 57.75 and ending the session at 57.80. Continued weakness could lead to a test of support at 56.15 and then 54.80. A short-covering rally on Friday could see a test of the downward sloping 8 DMA (59.45) and then 59.825 resistance.
For those interested I hold a weekly livestock webinar on Friday, September 22 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.