Live Cattle
The April Live Cattle contract made a new low for the down move, trading to a low of 120.125 on Monday, March 19, 2018. It ended the day nearby at 120.45. It ended the day below the 120.50 support level. A breakdown below 120.125 could see price test the 119.15 support level and then the 200 DMA at 118.175. A rally off of the Monday low could see price test resistance at 121.325. The negotiated cash trade quiet in all major feeding regions. Monday afternoon boxed beef cutout values were weak on Choice and firm on Select on light to moderate demand and offerings. Choice was down 0.72 to 224.87 and Select was up 0.43 at 217.29 on 78 loads. The choice/ select spread narrowed to 7.58. The estimated cattle slaughter for Monday was reported at 118,000.
Feeder Cattle
The April Feeder Cattle contract opened at 140.75 and attempted to move higher, reaching the high at 140.875. The weak move higher led to a break down to a new low for the move at 138.00. The low took out the December 22nd low (138.30), keeping the down trend that started with the high made in May of 2017 (163.50). If price is unable to rally from the Monday low then a test of support at 136.75 is possible. If Feeder Cattle can rally and hold above the Monday low: a test of resistance at 138.95 is possible. Resistance then comes in at 140.775.
Lean Hogs
The April Lean Hogs contract opened at the session high (65.25) and collapsed. It spent the day trending lower and made the low at the end of the session (62.975). It ended below the 63.325 support level. This puts the 61.80 support level in play and a break down below the Monday low could send price towards support. Resistance is at 64.80.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 22nd 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.