The cattle markets were quiet on Monday September 10, 2018. They tested resistance at 110.80 in the October Live Cattle, making the high at 110.775. The October Feeder Cattle contract traded up to 153.30, just shy of resistance at 153.50. Cash cattle traded higher on Friday reaching 108.00 for live cattle in the Southern Plains and Colorado, while in Nebraska trades took place between 107.00 and 108.50. Dressed sales were at 170.00. In the Western Corn Belt, live cattle traded between 107.00 and 108.00, while dressed sales were between 170.00 and 173.00. Volume for the week came in around 111,000, much larger than expected with the lack of trading earlier in the week. Trade will most likely take place at the end of the week and could be higher than last week. Boxed Beef prices dipped on choice to 206.30 (down 0.26) while select cuts were strong, up 1.84 to 198.93. I would buy pullbacks to support in either feeder cattle or live cattle, expecting futures to eventually break out above resistance levels. Place stops in accordance to account size and risk tolerance.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, September 13th 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.