Cattle and Hog markets continue to trade within their trading ranges. Cattle markets are trading in the lower end of their ranges while Hogs are trading in the upper end of its range. January Feeder Cattle broke down and made a new low (147.575), challenging the 200 DMA at 147.70. It held and Feeders settled at 148.10. A break down from the low could see price test 146.20 and then 145.05. If the 200 DMA holds, price could continue to consolidate within the 152.425 – 147.575 trading range. Live Cattle traded down to support at 116.55, making the low at 116.525. The Live Cattle trading range low is nearby at 116.025. A failure from here could see price test support at 114.65. If support holds price could move towards resistance at 117.725 and the 118.425. December Hogs challenged the 100 DMA at 59.475 and the October 1st high at 59.95, reaching 58.875 for the session high. It failed from here and traded to the low at 58.70. It settled near the low at 59.00. A break out above resistance could see price move toward resistance at 61.80. A break down from the low could see price test support at 57.025.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 1st 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