Live Cattle
The December Live Cattle contract made a new high for the current up move on Monday, October 9, 2017, trading up to 117.575, in quiet holiday trading. It couldn’t hold onto the high and broke down and tested the 116.55 support level, making the session low at 116.475. It formed a Doji candlestick as the market ended the day in the middle of the range, right near the open and at Friday’s high (117.10). A rally above the Monday high could lead to a test of resistance at the September 22 high (117.725) and then resistance at 119.15. Trading below the low could see the 200 DMA tested (115.60). The negotiated cash market was quiet on Monday. On Friday, after the futures closed, cash traded from 109.00 up to 110.50. Monday afternoon boxed beef cutout values were higher on Choice and Select on light to moderate demand and moderate offerings. Choice was up 0.91 to 198.13 and Select was up 1.43 to 188.66 on 94 loads. The choice/ select spread narrowed to a plus 9.47. The estimated cattle slaughter for Monday was reported at 115,000.
Feeder Cattle
The November Feeder Cattle made another attempt to trade above the 156.025 resistance level reaching a new high for the up move at 156.45. It couldn’t sustain the rally and broke down below the Friday low (154.85), forming an outside day candle. The session low is 154.70. It ended the day at 155.525, below the 156.025 resistance level. A break out above the high could lead to a test of resistance at the September 20 high (157.30) and then 159.975. A break out below the low could lead to a test of support at the 13 DMA (154.25), the rising 21 DMA (153.15) and the 152.30 support level.
Lean Hogs
The December Lean Hogs contract formed a Doji candlestick, right at the 8 DMA (61.175). It made the high at 61.325 and the low at 60.70, and ended the session at 60.90. A break down from the low could lead to a test of support at the 13 DMA (59.925) and the 21 DMA (59.925) and the trendline at 59.975. Support then comes in at 58.10. Taking out the high could lead to a test of resistance at 61.80 and then the declining 50 DMA (62.925).
For those interested I hold a weekly livestock webinar on Friday, October 13 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.
Live Cattle
The December Live Cattle contract made a new high for the current up move on Monday, October 9, 2017, trading up to 117.575, in quiet holiday trading. It couldn’t hold onto the high and broke down and tested the 116.55 support level, making the session low at 116.475. It formed a Doji candlestick as the market ended the day in the middle of the range, right near the open and at Friday’s high (117.10). A rally above the Monday high could lead to a test of resistance at the September 22 high (117.725) and then resistance at 119.15. Trading below the low could see the 200 DMA tested (115.60). The negotiated cash market was quiet on Monday. On Friday, after the futures closed, cash traded from 109.00 up to 110.50. Monday afternoon boxed beef cutout values were higher on Choice and Select on light to moderate demand and moderate offerings. Choice was up 0.91 to 198.13 and Select was up 1.43 to 188.66 on 94 loads. The choice/ select spread narrowed to a plus 9.47. The estimated cattle slaughter for Monday was reported at 115,000.
Feeder Cattle
The November Feeder Cattle made another attempt to trade above the 156.025 resistance level reaching a new high for the up move at 156.45. It couldn’t sustain the rally and broke down below the Friday low (154.85), forming an outside day candle. The session low is 154.70. It ended the day at 155.525, below the 156.025 resistance level. A break out above the high could lead to a test of resistance at the September 20 high (157.30) and then 159.975. A break out below the low could lead to a test of support at the 13 DMA (154.25), the rising 21 DMA (153.15) and the 152.30 support level.
Lean Hogs
The December Lean Hogs contract formed a Doji candlestick, right at the 8 DMA (61.175). It made the high at 61.325 and the low at 60.70, and ended the session at 60.90. A break down from the low could lead to a test of support at the 13 DMA (59.925) and the 21 DMA (59.925) and the trendline at 59.975. Support then comes in at 58.10. Taking out the high could lead to a test of resistance at 61.80 and then the declining 50 DMA (62.925).
For those interested I hold a weekly livestock webinar on Friday, October 13 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.