Live Cattle
The April Live Cattle contract broke down below lows from February 9th (122.80) and January 26th(122.025) on Tuesday, March 1, 2018. It traded below the 50 DMA (122.875) and found support just above the 100 DMA (121.975), making the session low at 122.325. It was able to recover and it made the session highs at the end of the day reaching 123.90, before ending the day at 123.50. It formed a Doji candlestick. If Live Cattle can trade above 123.90 on Friday it may see some short covering going into the weekend. Resistance remains at 124.70 and 125.60. The 8 DMA (124.875) is below both the 13 DMA (125.375) and the 21 DMA (125.075). A close above 125.50 could lead to further gains next week. A failure from 123.125could see price revisit the 100 DMA. The negotiated cash trade was light on light demand in all major feeding regions. Thursday afternoon boxed beef cutout values were firm to higher on Choice and Select on light to moderate demand and offerings. Choice was up 1.27 to 222.30 and Select was up 0.50 to 215.60 on 119 loads. The choice/ select spread widened to 5.73. The estimated cattle slaughter for Thursday was reported at 119,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 2nd at 2:30pm. 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.S.