January Feeder cattle continued its break down after yesterday’s pause, trading to a new low at 145.45. The low is just above support at 145.05 and continued weakness could see price test the 144.20 and then 143.50 support levels. Resistance is at 146.20 and then 147.30. December Live Cattle continued to trade within the Monday range as it tested support at 114.65 and resistance at 116.55. A push above 116.55 could see price test 117.725 and then 119.15. A breakdown below 114.65 could see price test 113.90 and support then is at 112.35 – 112.075. Cash has been quiet with few trades in Iowa at lower prices this week but nothing to indicate a trend. Boxed beef prices were lower but are higher than last year at this time period. Packer margins remain strong as they seem to be in control of both ends of the market. They are slaughtering enough to keep customers wanting more and preventing producers from raising the prices they have to pay. They have navigated the supply and demand waters well as there continues to be enough supply in the market and worry about demand continuing at the retail level for packers to tip over.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 8th 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.