The October Lean Hogs contract spent the session bouncing above and below the 66.55 resistance level before settling above it at 67.125. A rally from settlement could see price test resistance at 67.80 and then 69.80. A failure from settlement could see price fall back within Tuesday’s range. The Lean Hog index continued it fall and is at 67.97 as of 8/30/2019. The Pork Cutout Index fell and is at 73.03 as of 9/3/2019.
October Live Cattle consolidated within Monday’s trading range and settled at 99.025. This is just below resistance at 99.375. A failure from settlement could see price test support at 98.10 and then the August 16th low at 97.775. A rally from settlement could see price test resistance at 100.275 and then move towards resistance at 101.625. The cash market was at a standstill. Boxed beef cutouts declined with choice cutouts down 0.01 to 230.65 and select down 2.67 to 208.95 on light demand and light offerings. The choice/ select spread widened to 21.70 and the load count was 141. Slaughter was 117,000.
October Feeder Cattle tested support at 132.075 early in the trading session. It made the low right at support then recovered and traded to the high at 133.675. This is just above resistance at 133.50. It couldn’t stay above resistance and settled just below it at 133.425. A continued recovery could see price test resistance at 134.25 and then 135.60. A failure from settlement could see price re-test the 132.075 support level and then the Friday low at 130.20. Support then comes in at 129.65. The Feeder Cattle Index dipped to 138.84 as of September 3rd.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, September 6th 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.