Live Cattle
On Tuesday July 10, 2018 the August Live Cattle contract broke down and approached the 104.85 support level, making the low at 105.10. It settled nearby at 105.45. If cattle can recover from settlement a test of the 106.025 resistance level is possible. Resistance then comes in at 107.35. A breakdown below the low could see support tested at 104.20. Support then comes in at 103.00. On Tuesday negotiated cash trade was at a standstill in in all major feeding regions. Tuesday afternoon boxed beef cutout values were steady to firm on moderate to fairly good demand and moderate offerings. Choice was up 0.40 at 207.32 with Select down 0.23 to close at 198.39 on 144 loads. The hide and offal value from typical fed cattle for today was estimated at 9.49 per cwt live, down 0.08 from Monday’s value. The estimated cattle slaughter on Tuesday was reported at 120,000.
Feeder Cattle
The August Feeder Cattle contract consolidated (152.375 – 50.675) within the Monday range (152.55 – 150.35). It settled at 151.85. A breakout above the Tuesday high could lead to attest of resistance at 153.50 and then 154.25. A breakdown below the low could see support tested at 149.975 and then 148.40. Support then comes in at 147.35 and 146.20.
Lean Hogs
The August Lean Hogs contract fell hard, going down limit and settling at the limit price (69.775). The settlement was below the 70.125 support level and continued pressure below support could lead to a test of the 68.75 support level. Support then comes in at 67.775. If support holds, consolidation within the Tuesday range is likely.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, July 12th 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.