The August Lean Hogs contract consolidated within Monday’s trading range. It settled right at the 76.175 resistance level. A failure from settlement could see the 74.25 support level revisited. This is also the Tuesday low. A failure from here could see price approach the 72.80 support level. If settlement holds then a test of resistance at 77.80 is possible. Resistance then comes in at the declining 8 DMA now at 79.506. The Lean Hog Index declined and is at 78.65 as of June 21st. The pork cutout index dropped to 78.30 as of June 24th. The quarterly Hogs and Pigs report will be released after the close (2pm CST) on Thursday June 27th.
August Live Cattle consolidated within Friday’s trading range for the second day in a row. Settlement was at 103.25. It is right at resistance at 103.00. If price holds settlement then the 104.20 – 104.85 resistance area should be tested. Support is at 101.625 and then 100.275. The cash market was quiet. Boxed beef cutouts were mixed as choice cutouts were down 0.10 to 219.64 and select was down 0.86 to 198.95 on weak to moderate demand and moderate to good offerings. The choice/ select spread widened to 20.69 and the load count was large at 151. Slaughter was 121,000.
August Feeder Cattle consolidated within Monday’s range. It settled at 131.325. Support is right there at 130.925. Continued selling could see price test support at 129.65 and then 128.875. A rally above settlement could see price test resistance at 133.50 and then 134.25. The Feeder Cattle Index ticked higher to 131.46 as of June 24th.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 27th 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.