Cattle markets soared on Friday, September14, 2018. The October contracts both traded up the limit, with the October Live Cattle contract settling up limit. Feeders dipped at the end of the session, settling at 158.875, a little more than a buck off the limit price. Feeders settled just above the 158.80 resistance level and Live Cattle just below the 113.90 resistance level. Demand for beef has remained strong, surprising many while cattle supply is believed to have stabilized and is anticipated to decline over the coming months. Boxed prices remain strong and packer margins are healthy and they have a need to buy cattle, in my opinion. They need to buy cattle to maintain their slaughter levels to fill their orders. The rally in the futures this week has emboldened producers and as of this article packers have bid up dressed to $175.00 in the North and have purchased some cattle at that price. They are also bidding $111.00 for live cattle in the north but haven’t had any purchased. Trade has been at a standstill in the Southern plains so far.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, September 20th 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.