Live Cattle
The April Live Cattle contract opened at 122.125 on Friday, March 9, 2018, then broke down and traded to the low of the day at 121.125. This is right near support at 121.325 and Thursday’s low (120.90). It rallied from here and traded past the Thursday high (123.30), reaching 123.525 and ended the day at 123.25. It is right at the rising 50 DMA (123.20) and the key level 123.125. A break down below these levels could see the rising 100 DMA (122.275) tested and then support revisited at 121.325 and 120.90. A rally above the Wednesday high (123.675) could lead to a retest of resistance at the 21 DMA (124.475) and 124.70. The negotiated cash trade was limited on light demand in all major feeding regions. Cash for the week has traded between 126.00-128.00 for live cattle and mostly at 204.00 for dressed. Friday afternoon boxed beef cutout values were firm on Choice and Select on light to moderate demand and light offerings. Choice was up 0.26 to 224.14 and Select was up 0.48 at 217.26 on 74 loads. The choice/ select spread narrowed to 6.88. The estimated cattle slaughter for Friday was reported at 112,000.
Feeder Cattle
The April Feeder Cattle contract traded in the lower half of Thursday’s range with the Friday range at a high of 143.95 and the low at 142.00. It ended the day at 143.225. It formed and inside day and Doji candlestick. A rally above the Friday high could see price test resistance at 144.20 and the 145.05. A break down below the Friday low could see a test of support at 140.775.
Lean Hogs
The April Lean Hogs contract opened (67.775) lower, attempted to rally, reaching the session high at 68.30 and then broke down and traded to the low of the day at 67.00. It then rallied and failed just below the high, reaching 68.025 and then broke down yet again, trading to 67.525 and ending the day at 67.55. It ended the day with a small bodied candlestick. Trading below 67.55 could lead to a test of support at 66.50. A rebound from 67.775 could see price test the rising 100 DMA, now at 68.775.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 15th at 3:00 pm. 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.