Live Cattle
The December Live Cattle contract found support on a test of the 8 DMA (114.775) making the low at 114.65 on Thursday, October 5. 2017. It grinded higher from the low and made the session high at the end of the trading session, reaching 116.325, just below the 116.55 resistance level. It ended up above the 200 DMA (115.575). A rally above 116.55 could lead to a test of resistance at the September 22 high (117.725). Trading below the 200 DMA could see the rising 8 DMA retested. A dip below the 8 could see a test of the rising 13 DMA (114.25). The negotiated cash market was quiet. Thursday afternoon boxed beef cutout values were lower on Choice and Select on light to moderate demand and moderate offerings. Choice was down 0.16 to 197.25 and Select down 0.77 to 188.78 on 138 loads. The choice/ select spread widened to a plus 8.47. The estimated cattle slaughter for Thursday was reported at 117,000.
Feeder Cattle
The November Feeder Cattle traded within the Wednesday range forming an inside candle. A break out above the high (155.10) could lead to a test of resistance at 156.025 and then 159.975. A break out below the low (153.675) could lead to a test of support at 152.30, (the rising 21 DMA (152.35) is right there too).
Lean Hogs
The December Lean Hogs contract remain locked within in the 63.325 – 61.80 trading band. It made a high at 63.125 and a low at 61.725. A break down from the 61.80 support level could lead to a test of support at the 21 DMA (60.00) and the trendline at 59.975. Taking out the 63.325 resistance level could lead to a test of resistance at 64.90.
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.