The August Lean Hogs contract made a new high for the up move, trading up to 82.85 for the session high. It pulled back from here as the rising 100 DMA (82.53) provided strong resistance and it settled at 81.725. The 100 DMA and 83.325 should provide strong resistance for Hogs. A failure from settlement could see price test support at 80.45. Stops above 83.325 could take price to the declining 50 DMA now at 84.715. The Lean Hog Index declined and is at 71.25 as of July 8th. The pork cutout index recovered to 72.72 as of July 9th.
August Live Cattle consolidated yesterday’s gains. It opened above the declining trendline resistance at 107.95; making the high just above it at 108.125.This was also yesterday’s settlement price. It dipped lower to the session low at 107.25 and settled at 107.625. It formed a narrow range candle and could lead to better price action on Thursday. The trendline dips to 107.675 for Thursday and will key trading on Thursday. A break out above the trendline could see price test resistance at 108.65 and then make its way towards resistance at 110.80. A failure at the trendline could see price revisit the 107.30 support level and then move towards support at 106.025. The cash market was quiet. Boxed beef cutouts declined again as choice cutouts were down 0.31 to 214.42 and select was down 1.20 to 190.89 on light to moderate demand and moderate to heavy offerings. The choice/ select spread widened to 3.53 and the load count was large at 182. Slaughter was 119,000.
August Feeder Cattle consolidated Tuesday’s gains. It also formed a narrow range candle which could lead to another swing higher if Monday’s highs are broken. Monday’s high was 143.30 and resistance is at 143.50. A breakout could see the 100 DMA tested at 144.72 and then resistance at 145.05. A breakdown below 142.40 could see price make a steeper pullback to support at 140.775. The Feeder Cattle Index inched higher and is at 135.76as of July 9th.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, July 11th 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.