Live Cattle
The April Live Cattle contract made a new high (127.95) for the up move on Tuesday, February 20, 2018. That is the only positive aspect to the day’s trade. It broke down from the new high and tested support at 127.15, making the session low just above it at 127.20. It grinded higher and touched the high then dipped lower, ending the day at 127.725. It is right in the middle of the 127.15 – 127.875 – 128.30 resistance zone. It was a neutral day with a small body as it formed a hanging man candlestick. A break down below the Tuesday low could lead to a test of support at the 8 DMA (125.775). A rally above the high could see the top of the resistance band tested. Resistance then comes in at 129.50. The negotiated cash trade was mostly inactive on light demand in all feeding regions. Tuesday afternoon boxed beef cutout values were sharply higher on Choice and Select on moderate to good demand and light to moderate offerings. Choice was up 3.35 to 215.92 and Select was up 2.97 to 210.40 on 113 loads. The choice/ select spread widened to 5.57. The estimated cattle slaughter for Tuesday was reported at 117,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, February 20th at 3:00pm. 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.