Live Cattle
The April Live Cattle contract tested the rising 100 DMA (122.10) on Monday, March 5, 2018, as t matched it, making the low of the day at 122.10 during the first 5 minutes of the session. It grinded higher the rest of the day, making the high at 123.675 and it ended the session at 123.20. The high is just below the 8 DMA (123.825) and it settled above the 50 DMA (122.95). It couldnt break out above or below the Friday range and formed an inside candle. If Live Cattle can trade above the Monday, a test of resistance at 124.70 and then 125.50 is possible. A close above 125.50 could lead to a retest of the 127.15 to 128.30 resistance band. A failure from 123.125 could see price revisit the 100 DMA. Support ten comes in at 121.325. The negotiated cash trade was at a standstill in all major feeding regions. Monday afternoon boxed beef cutout values were steady to firm on Choice and Select on light to moderate demand and moderate offerings. Choice was up 0.71 to 223.23 and Select was up 0.20 to 214.84 on 95 loads. The choice/ select spread widened to 8.39. The estimated cattle slaughter for Monday was reported at 119,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 8th at 2:30pm. 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.