The cattle markets couldn’t follow through to the upside on Tuesday, October 23, 2018. Both markets broke down and traded below the Monday lows. Buyers came in and lifted prices from the lows and they settled in the middle of their trading ranges. January Feeders can trade above 152.30, a test of resistance at 153.50 is possible and then 154.25. A break down below 149.60 could take price down to 147.30. December Live Cattle approached support at 116.55 with its low at 116.675. It settled at 117.15. A rally above resistance at 117.725 could take price up to resistance at 119.15. A break down through support could take price down to support at 114.65. Cash trade was at a standstill and choice cutouts continued its seasonal advance. Cutouts were higher at 210.28 up 1.00. Continued upward pressure in cutouts could lead to higher cash prices (seasonal advance).
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, October 24th 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.