It was a day of consolidation in the cattle and Hog markets as the lead contracts pulled back after the Monday gains. The December Lean Hogs traded within the Monday range forming an inside candle. It traded near support at 58.25, making its low at 58.50 and then recovering and closing at 59.15. Resistance is at 59.975. The December Live Cattle contract broke down early in the trading session making its low at 118.00, just above support at 117.725. It rallied from here and traded to its session high at the end of the day reaching 119.55 and then settling nearby at 119.475. This is above the 119.15 resistance level and a strong opening on Wednesday could see price challenge the Monday high (119.75) and then resistance above at 120.75. Feeder Cattle also broke down early, matching the Monday low at 157.875 and then rallying to its high at the end of the day at 159.65. It settled at 159.575. It is just below resistance at 159.975 and if it can clear this hurdle, a test of resistance at 160.90 and 162.075 is possible.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, October 4th 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.