Live Cattle
On Tuesday August 7, 2018 the October Live Cattle contract broke down below the 110.80 support level, trading to the low at 110.10. A bounce took price above support and it settled above it at 110.925. If support holds, price could test the 112.35 resistance level. Resistance then comes in at 113.90. A failure from 110.80 could challenge support at 109.825 and then 108.85. On Tuesday negotiated cash trade was at a standstill in all major feeding regions. Tuesday afternoon boxed beef cutout values were steady on light to moderate demand and moderate offerings. Choice was down 0.19 at 205.49 with Select up 0.18 to close at 198.51 on 125 loads. The choice/ select spread narrowed to 6.98. The hide and offal value from typical fed cattle for today was estimated at 9.27 per cwt live, unchanged from Monday’s value. The estimated cattle slaughter on Tuesday was reported at 119,000.
Feeder Cattle
The September Feeder Cattle contract broke down hard trading through multiple support levels all the way down to the 148.075 low. It settled (148.725)above the last support level it broke through at 148.40. Follow through to the downside could see support tested at 147.35 and then 146.025. If support holds, consolidation within the Tuesday range is likely.
Lean Hogs
The October Lean Hogs contract rallied early and once again fades as the session moves forward. Rallying to the high at 51.225, Hogs couldn’t even pose a serious test of the 51.80 resistance level. It was however able to challenge the 49.925 support level, trading down to 49.875 and settling just above it at 49.975. A rebound from settlement could see a challenge of the Tuesday high and then the 51.80 resistance level. A breakdown below the low could see the August 3rd 49.35 low tested again and then a possible new low for the down move. Support then comes in at 48.725.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, August 9th 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.