The cattle markets continued their choppy trade on Wednesday, October 24, 2018. Both markets rallied and tested upper resistance levels. January Feeder Cattle saw buyers come in and lift prices above resistance at 152.30 to the session high at 152.425. Sellers came in and took price lower and Feeders settled at 151.35. This below the 151.55 key level and follow through to the down side could take price down to the 149.975 support level. If Feeders can rally above the high a test of resistance at 153.50 is possible and then 154.25. December Live Cattle fared better the Jan Feeders. It rallied past resistance at 117.725 and traded to the high at 118.675. It settled nearby at 118.35. A rally above the high could take price up to resistance at 119.15. A break down through the 117.725 support level could take price down to support at 116.55. Cash traded lightly at 112.00 in the Western Corn Belt. Trade was limited in other regions. Cutouts continued higher with choice higher at 211.39 up 1.11. Select was up .96 to 197.82. Continued upward pressure in cutouts could lead to higher cash prices (seasonal advance).
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, October 24th 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.