November Feeder cattle continues to trade in the lower part of its 159.90 – 155.525 trading range, with the Thursday October 11, 2018 range from 155.95 low to the 157.275 high. It settled at 156.75. A close below 155.525 could send price down towards 151.00. A rally past 157.30 could send price up towards the 159.90 high. A break out above the high could see price test resistance at 160.90 then 162.075. December Live Cattle tested support at 116.325, making the low at 116.40 and then rallying at the end of the day toward the 117.275 high and settling at 116.775. It was a tight trading range and markets continue to look for direction. Cash traded at 111.00 on a live basis, continuing its steady trade and unable to move higher for producers as cutouts remain close to 200.00 for choice, inching higher (+.40) to 202.51. Balance in the supply/ demand battle. As long as this balance is maintained, price could continue to trade in a range. A break down below the 116.325 support level could take the December contract down to test support at 114.65. A rally above the high could see price move towards resistance at 119.15.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, October 12th at 2:30 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