Live Cattle
The June Live Cattle contract made another new low (100.775) for the down move on Monday, April 2, 2018. It one again made an early attempt to rally that failed. It traded to 103.825, just below the low end of the 104.20 – 104.85 resistance zone. Once again the rally failed; and it broke down and traded to the low of the day and settled near the low at 100.95. A break down below the Monday low could see support tested at 100.275 and then 99.375. Support then comes in at 97.35. A recovery off the low could see resistance at 101.625 tested and then 103.00. On Monday negotiated cash trade was at a standstill in all major feeding regions. Monday afternoon beef cutout values were lower on Choice and higher on Select on light to moderate demand and moderate offerings. Choice was down 1.24 at 219.80 with Select up 1.81 to close at 210.50 on 86 loads. The choice/ select spread narrowed to 9.30. The hide and offal value from typical fed cattle for today was estimated at 10.07 per cwt live, down 0.05 from Friday’s value. The estimated cattle slaughter for Monday was reported at 102,000.
Feeder Cattle
The May Feeder Cattle contract made a new low for the down move trading to 131.60. This is below the 132.075 support level, but it closed above it at 132.375. If support holds, a rally to the 133.30 and 134.25 levels are possible. Taking out the low could see price test support at 131.25 and then 129.65.
Lean Hogs
The June Lean Hogs contract broke down hard and went down limit closing at the limit price (73.55). A break down below the 73.55 low could see price test support at 72.875 and then 71.80. If support holds we can see some consolidation within Monday’s range (75.35 – 73.55).
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, April 5 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