Cattle markets broke down through the lower end of their trading ranges on Monday, November 5, 2018. December Live Cattle traded below the October 12th low at 116.025 and broke down to support at 114.65, making the low at 114.35. It bounced from here and settled at 115.325. If settlement holds on Tuesday a test of resistance at 116.55 is possible. Resistance then comes in at 117.725. If price breaks down below the 114.325 low a test of support at 113.90 and then 112.35 – 112.075 is possible. January Feeder Cattle took out the 147.575 low and traded down to support at 146.20, making the low at 146.225. It settled nearby at 146.425. This is below the 200 DMA at 147.775. If Feeders can’t reclaim the 200 DMA a break down to support at 145.05 and then 144.20 is possible. Support then comes in at 143.50. A recovery above the 200 DMA could see price test resistance at 148.425. Resistance then comes in at 149.975. Cash traded on Friday between 115.00 and 116.00 on a live basis and some at 180.00 on a dressed basis. Boxed beef prices remain strong, keeping packer margins at lofty levels.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 8th 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.