The December Lean Hogs opened lower and made a new low at 63.375, recovered and rallied to the session high at 65.30. It pulled back to settle at 64.525. It is still stuck between resistance at 66.55 and support at 63.325. A break down below settlement could see price revisit the low and then the October 8 low at 63.075. A rally above the high could see price test resistance at 66.55. The Lean Hog index continued its decline and is at 62.10 as of 10/31/2019. The Pork Cutout Index dipped and is at 76.04 as of 11/01/2019.
December Live Cattle held the key level at 119.15 making the session low at 119.05. It worked its way higher and stopped at 120.325 for the high of the day. This is just below the 120.75 resistance level. It settled nearby at 120.075. A push above the high could see resistance tested at 120.75. Aggressive buying could take price up to resistance at 121.90. A pullback from settlement could see support at 119.15 tested and then 117.80. The cash market was at a standstill. Boxed beef cutouts were higher with choice cutouts up 1.61 to 234.81and select up 2.87 to 210.38 on good demand and moderate offerings. The choice/ select spread narrowed to 24.43 and the load count was 81. Slaughter was 115,000.
January Feeder Cattle consolidated within Friday’s range. It settled unchanged from Friday at 146.00. This is just below the 146.20 resistance level. A failure from settlement could see price test support at 145.05 and then 144.25. A rally past resistance could see price test the 147.30 resistance level. Resistance then comes in at 148.40. The Feeder Cattle Index rose and is at 146.45 as of 11/01/2019.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 7th 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.