Live Cattle
On Tuesday June 26, 2018 the August Live Cattle contract opened steady at 102.90, traded to the high at 103.725 then broke down, trading through the 103.00 support level on its way to the low at 102.00. It settled at 102.425. A breakdown below the low could see price test support at 101.625 and then trendline support at 101.35. Support then comes in at the June 15 low at 100.40and then 100.275. A recovery off of settlement could see price retest 103.00 resistance and then move towards the 104.20 – 104.85 resistance band. On Tuesday negotiated cash trade was mostly inactive on light demand in all major feeding regions. Tuesday afternoon boxed beef cutout values were weak to lower on light to moderate demand and moderate offerings. Choice was down 0.86 at 216.83 with Select down 0.32 to close at 201.57 on 128 loads. The hide and offal value from typical fed cattle for today was estimated at 9.67 per cwt live, unchanged from Monday’s value. The estimated cattle slaughter on Tuesday was reported at 115,000.
Feeder Cattle
The August Feeder Cattle contract consolidated within the Monday trading range. A breakout above the 146.60 high could see price challenge resistance at the 200 DMA (147.05) and 147.35. Resistance then comes in at 148.425. A breakdown below settlement (146.10) could see price test support at 145.05 and then 144.20. The 100 DMA (143.65) is next and then 143.50 and 142.40.
Lean Hogs
The August Lean Hogs contract opened steady at 73.60 and took off. It traded all the up to resistance at 75.625, making the high at 75.65. Resistance held and a decent pullback ensued with Hogs settling s at 74.75 A continuation higher could see price test the 75.625 resistance level again and the 76.225. A failure from settlement could see Hogs test the 74.125 support level and then the 100 DMA at 73.975. Support then comes in at 72.875 and then 71.80.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 28th 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.