Live Cattle
The April Live Cattle contract opened lower (124.00) on Monday, February 26, 2018. It attempted an early rally, trading up to resistance (124.70), reaching the session high at 124.75. It broke down from here and traded to the low of the day and for the down move at 123.55. It ended the session at 124.00, creating a Doji candlestick. This indicates indecision and with the low just above the 123.125 support level, could signal a low for the move. A rally above the Monday high could lead to a test of resistance at 125.50 and then the down sloping 8 DMA (126.075). A break down below the low could lead to a test of the February 9th low at 122.80. Braking below 122.80 could be the first sign of the uptrend weakening. The negotiated cash trade was mostly inactive on light demand in all major feeding regions. Monday afternoon boxed beef cutout values were higher on Choice and Select on light to moderate demand and offerings. Choice was up 1.15 to 219.52 and Select was up 1.90 to 214.72 on 83 loads. The choice/ select spread narrowed to 4.80. The estimated cattle slaughter for Monday was reported at 117,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 1st 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.