Live Cattle
On Tuesday July 17, 2018 the August Live Cattle contract consolidated after Monday’s limit up move. A nominal new high (107.60 vs. Monday’s 107.55) above the 107.35 resistance level failed to attract buyers. Price pulled back nearing the 106.025 support level, with the session low at 106.125. It settled near the low at 106.425. A breakdown below the low could see support tested at the 104.85 – 104.20 support zone. A rally above the high could see resistance tested at 108.65. On Tuesday negotiated cash trade was at a standstill in in all major feeding regions. Tuesday afternoon boxed beef cutout values were firm to higher on moderate to fairly good demand and moderate to heavy offerings. Choice was up 0.63 at 204.39 with Select up 1.19 to close at 196.86 on 145 loads. The choice/ select spread narrowed to 7.53. The hide and offal value from typical fed cattle for today was estimated at 9.18 per cwt live, unchanged from Monday’s value. The estimated cattle slaughter on Tuesday was reported at 120,000.
Feeder Cattle
The August Feeder Cattle contract consolidated within the Monday trading range (153.375 – 150.275), with the Tuesday range at 153.175 – 150.875. It settled at 151.275. Trade couldn’t best resistance at 153.50 and support at 150.90. A breakout above resistance could see price challenge the 154.25 resistance level. A breakdown from support could see support tested at 149.975, 148.40 and then 147.35
Lean Hogs
The August Lean Hogs contract broke down and traded to a new low for the down move at 67.725. This is right at the 67.775 support level. It settled just above it at 67.90. A breakdown below the low could lead to a test of support at 66.75. A rally off the low could see price consolidate within the Tuesday range.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, July 19th 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.