Live Cattle
On Monday June 4, 2018 the August Live Cattle contract opened at 103.575 and traded in a range (102.775 low to 104.225 high) for most of the day. A break down at the end of the day saw price take out the 102.775 low and trade to the low of the day at 102.35and then settle nearby at 102.45. A break down below the low could lead to a test of support at 101.625 and then 100.125. Trading above 104.225 will face resistance at 104.85, 105.20 and then 106.025. On Monday negotiated cash trade was at a standstill in all major feeding regions. Monday afternoon beef cutout values were steady on Choice and higher on Select on moderate to fairly good demand and moderate to heavy offerings. Choice was up 0.04 at 227.57 with Select up 1.45 to close at 206.25 on 127 loads. The choice/ select spread narrowed to 21.32. The hide and offal value from typical fed cattle for today was estimated at 9.54 per cwt live, down 0.01 from Friday’s value. The estimated cattle slaughter for Monday was reported at 116,000.
Feeder Cattle
The August Feeder Cattle contract opened at 146.225 and grinded its way lower, making the high at 146.725 and the low (at the end of the day) at 144.70. It settled at 144.85. Trading above settlement could see price retest the Monday high. Resistance then comes in at 147.35. 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 opened at 78.725 and traded up to the session high at 79.00. It failed from here and broke down trading to the session low at 76.275, just above support at 76.225. Hogs recovered and settled at 77.925. Trading above settlement could lead to a test of resistance at 79.775 and then 80.30. Trading below settlement could lead to a re-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.