Commentary: April Live Cattle had a great start to the month of March opening higher as the volatile equity markets reversed course off its morning lows. The positive price action in equities caused a sigh of relief and the cattle and Hogs markets showed early strength. The drive higher stalled mid-session and the livestock markets took out their opening prices and made new lows for the day. Cattle markets recovered nicely with Live cattle surging to new highs and going up limit after settlement at 1pm CT. The April settled at 110.15. The limit was reached at 110.575. I think the livestock markets will continue to react to the outside markets, especially the Equity markets and the coronavirus disease. The disease has impacted all markets as it continues its spread around the world. This has led to massive disruptions in the supply chain as economic activity grounded to a halt in China where the disease got its start. China seems to be starting to come around and hopefully the disease will die out. No one knows what will happen however and worries will persist. The markets are guessing central banks will come to the rescue and provide stimulus. Resistance is at 110.80, 112.35 then the 200 DMA at 113.19. Support is at 109.60, 108.65 and then 107.30. Cash trade was at a standstill on Monday. Boxed Beef cutouts were higher on good demand and light to moderate offerings. Choice cutouts increased 1.23 to 206.53 and select was up 2.25 to 201.16. The choice/ select spread narrowed to 5.37 and the load count was 79. Slaughter was estimated to be 121,000.
Trade Suggestion(s):
N/A today
Risk/Reward:
Futures –
Options –
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursdays and our next webinar will be on Thursday, March 5th 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
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