Cash Cattle markets were on hold Friday 8/31/2018, as packers refused to budge (as of the I write this article) from their bids ($107 Live) and producers remain fixed on their offers($111.00 – $112.00) in the South where very few cattle have traded. A small amount of cattle have traded at $170.00 on a dressed basis in the North. October Lean Hogs made an attempt to retrace its losses but failed and settled below the 51.80 resistance level. The cash trade in cattle has been quiet all week, boxed prices declined and slaughter levels are steady as packers are in control of the market with a short kill week upcoming due to the Labor Day holiday. They are looking to maintain their margins and want lower cash in order to keep their margins strong. Futures prices grinded lower but remain in the upper range of the Monday rally. Trade will resume on Tuesday and if show lists increase significantly from the lack of trade this week futures prices could tumble. Hogs have China disease issues to work out and the ongoing trade negotiations for a new North American trade agreement which will continue to cause headline volatility in price action. Next week will be a short trading week for livestock markets, and negotiations will resume on Wednesday. Stay tuned!
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, September 7th 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.