June Lean Hogs consolidated within Thursdays trading range creating an inside candlestick. The past two trading sessions saw price inch past the 93.50 resistance level before pulling back and settling below it. Friday’s settlement was 92.75, just above support at 92.375. June Hogs are in the middle of a wide trading range from 86.25 low to 99.825 high. With a break out above 93.50 Hogs could retest the upper part of the trading range. Bullish news on trade talks with China could see price break out above the high of the range and challenge resistance at 104.35. A break down below 92.375 could see price move to retest support at 87.065.
June Live Cattle continued its creep lower. It made a new low for the down move at 113.225. It settled just above it at 113.425. It settled below the 113.90 support level and sets up a possible test of support levels 112.35 and 110.80. If the Friday low holds a test of resistance at 114.65 and then 116.55 is possible.
August Feeder Cattle continued its descent breaking down below the 100 DMA (147.08) and testing support at 146.20 and making the low just above it at 146.25. It settled at 146.375. If the 146.20 support level holds a retest of the 100 DMA is possible. Aggressive short covering could see price test resistance at 148.425 and then the 200 DMA at 149.11. Continued pressure could see price break down to support at 144.20 and then 143.50.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, May 9th 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.