Live Cattle
The December Live Cattle contract tested the 200 DMA (115.575) this morning, reaching the session high at 115.725 before failing and breaking down on Monday, October 2, 2017. It broke down below the 100 DMA (114.50) and traded to the lows at 113.35. It ended the session at 113.375. A continued break down could lead to a test of support at 112.425 and trendline support at 112.10. A reversal of fortune could see the 100 and 200 DMAs retested. The negotiated cash market was quiet. Monday afternoon boxed beef cutout values were higher on Choice and lower for Select on light to moderate demand and moderate offerings. Choice was up 0.60 to 197.22 and Select down 0.22 to 188.28 on 100 loads. The choice/ select spread widened to a plus 8.94. The estimated cattle slaughter for Monday was reported at 110,000.
Feeder Cattle
The November Feeder Cattle broke down and traded through support at 152.30, trading down to the session low151.475. It ended the day at 151.525. Support for Tuesday is at 151.25 (TL) and the rising 21 DMA (150.75). Support then comes in at 149.975. Breaking below 149.975 could lead to a test of the 100 DMA at 14870. Resistance is at 152.30 and then the 13 DMA (153.30).
Lean Hogs
The December Lean Hogs contract broke through trendline resistance (59.975) and the 21 DMA (60.10) and then powered its way up to and beyond the 61.80 resistance level. It reached a high of 62.675 and ended the day at 62.00. A continued rally could lead to a test of resistance at 63.325 and then 64.90. A failure from 61.80 could see a test of the Friday high at 61.175 and then the 21 DMA.
For those interested I hold a weekly livestock webinar on Friday, October 6 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.