The Cattle markets took one to the chin today making new lows for the down trend. Frustrated longs were in liquidation mode as the December Live Cattle broke down nearly going down limit. It tested the 113.90 support level while the January feeders tested its support at 143.50. Both markets settled above their support levels giving hope for a retracement next week. If support levels hold up on Monday the December Live cattle could recover and make its way towards resistance at 116.55. A failure could see price break down to the 112.35 -112.075 support zone. Support then comes in at 110.80. January feeders could see a recovery to 145.05 and then 146.20. A continuation lower puts 142.40 and 140.775 in focus. The weakness in the futures markets continues to play in the packers’ hands as cash prices moved lower on Friday. Cash traded at 114.00 – 115.00 on a live basis and 179.00 -180.00 for dressed cattle. Boxed beef prices continued its decline with choice down 0.87 to 215.20 and select down 0.30 to 198.72. The choice select spread narrowed to 16.48 on 97 loads.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, November 16th 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.