Live Cattle
On Tuesday June 12, 2018 the August Live Cattle contract opened at 104.175 and traded down to the session low at 103.25. This is just above the 103.00 support level. Price grinded higher from the low and made the high at the end of the day at 104.80. It settled at 104.30. The high is just below resistance at 104.85. Trading below settlement could leads to a retest of support at 103.00 and then 101.625. A recovery above settlement could retest resistance at 104.85 and then 106.025. On Tuesday negotiated cash trade was at a standstill in all major feeding regions. Tuesday afternoon boxed beef cutout values were steady to firm on light to moderate demand and light offerings. Choice was down 0.21 at 224.92 with Select up 0.59 to close at 203.39 on 120 loads. The choice/ select spread narrowed to 21.53. The hide and offal value from typical fed cattle for today was estimated at 9.41 per cwt live, down 0.04 from Monday’s value. The estimated cattle slaughter on Tuesday was reported at 120,000.
Feeder Cattle
The August Feeder Cattle contract opened at 145.65 traded down and tested support at 144.20, making the session low just above it at 144.50. It recovered and traded to the session high at 146.50. This is just above resistance at 146.20. It couldn’t hold above resistance, settling below it at 145.80. Trading below settlement could see price test support at 145.05 and then 144.20. Support then comes in at 143.50. If price can trade above 146.20, price could test resistance at 147.35 and then the Monday high (148.425).
Lean Hogs
The July Lean Hogs contract opened at 80.025 and traded down to the session low at 79.10. Price then bulled its way higher for the remainder of the day, taking out the Monday high (81.625) and making a new high for the up move at 81.75.It settled at 81.45. It negated the bearish engulfing candle and if price can trade past the Tuesday high, a test of resistance at 82.65 is possible. A failure from the high could see price consolidate within the Tuesday range.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 14th 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.