The October Lean Hogs continued its consolidation within Monday’s huge trading range. Monday’s range was 69.90 high to 61.50 low. The rest of the week’s range was 68.775 to 64.175. Friday’s range 68.65 to 66.60. Ho hum…. A break down below Friday’s low could see Monday’s low tested. A rally above the high could see Monday’s high tested. The Lean Hog index starting reverse course as it dropped to 82.85 as of 8/7/2019. The Pork Cutout Index continues to make its way higher rising to 88.09 as of 8/8/2019.
October Live Cattle also continued to trade within its Monday trading range. Monday’s range was 109.175 to 104.85. The remainder of the week traded between 108.35 to 105.675. Friday’s range was 107.85 to 106.425. A break out above Friday’s high could see resistance tested at 108.65 and then the Monday high. Trading below the 106.025 support level could see price test the Monday low. The cash market traded a tiny amount on a live basis at 113.00 in Nebraska. For the week, cash on a live basis traded between 111.00 – 116.00. Dressed sales took place between 180.00 – 186.00 for the week. So far, the volume is around 54,000 for the week nationally. Boxed beef cutouts were lower for choice cutouts at 0.51to 216.37 and select was up 1.44 to 193.81 on light to moderate demand and offerings. The choice/ select spread widened to 23.78 and the load count was 152. Slaughter was 118,000. Slaughter for the week is expected to be 645,000 including Saturday’s estimate.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, August 15 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.