Live Cattle
Friday June 1, 2018 saw the August Live Cattle contract consolidate within the Thursday range ((105.20 – 101.90). The Friday range was 104.425 – 103.30. A break down below the 103.30 low on Monday could see price revisit the Thursday low. Support then comes in at 101.625 and then 100.125. Trading above 104.425 will face resistance at 104.85, 105.20 and then 106.025. On Friday negotiated cash trade is light to moderate on light to moderate demand with live sales at 111.00. In the Western Corn belt trading is light on light to moderate demand with dressed sales at 177.00. Trade is slow in all other major feeding regions as producers pass on current bids. Boxed beef cutout values weak on Choice and firm on Select on light to moderate demand and offerings. Select and Choice rib, chuck, and round cuts steady to weak while loin cuts firm to higher. Beef trimmings sharply lower on light demand and moderate offerings. Choice is down 0.67 to 227.53, while select was up 0.33 to 204.80 on 116 loads. The choice/ select spread narrowed to 22.73. Slaughter for Friday is estimated at 121,000.
Feeder Cattle
The August Feeder Cattle contract also consolidated within its Thursday range (149.50 – 145.875). The Friday range came in at 147.80 – 145.875. Trading above 147.80 could see a retest of the 149.50 high then resistance at 149.975. Resistance then comes in at 150.90. A break down below the low could see price retest support at 144.20 and then 143.50.
Lean Hogs
The July Lean Hogs contract consolidated within the Thursday range (80.05 – 77.35), trading with a 79.125 high and 77.525 low. Trading above the high could lead to a test of resistance at 79.775 and then 80.30. Trading below the Thursday low could lead to a test of support at 76.225. Support then comes in at 75.625.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, June 1st 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 NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.