Live Cattle
On Tuesday July 24, 2018 the October Live Cattle contract traded between the 110.80 resistance level and the 108.85 support level. The range was 110.725 high to 109.40 low. It settled at 110325. It has formed a ledge as the past 4 trading sessions traded in similar ranges. All 4 sessions have consolidated around the July 18th rally from 108.35 to 110.775. A rally above 110.80 could lead to a test of resistance at 112.35. Trading below 108.65 could see price test support at 107.35. On Tuesday negotiated cash trade was at a standstill in all major feeding regions. Tuesday afternoon beef cutout values were steady on light to moderate demand and offerings. Choice was down 0.17 at 204.65 with Select down 0.08 to close at 197.95 on 135 loads. The choice/ select spread narrowed to 6.70. The hide and offal value from typical fed cattle for today was estimated at 9.17 per cwt live, unchanged from Monday’s value. The estimated cattle slaughter for Monday was reported at 120,000.
Feeder Cattle
The August Feeder Cattle contract tested support at 152.30, trading to the session low at 152.225 and settling above support at 152.75. Trading above settlement could lead to a test of resistance at 153.50. Resistance then comes in at 154.25. Trading below the low could see price test support at 151.55, 150.90 and then 149.975.
Lean Hogs
The October Lean Hogs contract rallied early in the trading session, testing resistance at 53.80 and making the high just above it at 54.25. It couldn’t sustain the rally and broke down hard, trading to the low of the day at 51.95. It settled at 52.525. The low and settlement s just above the 51.80 support level and this area could be the key to trade on Wednesday. A breakdown below 51.80 could see price test support at 49.925 and 48.725. A rally from settlement could see price revisit resistance at 53.80.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, July 27th 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.