Cattle markets made an early attempt at a rally today before stalling and falling to the lower end of the day’s trading ranges. January Feeder Cattle tested the 200 DMA at 147.725, making the high at 148.00 and then trading to the low of the day at 146.125. It settled unchanged at 146.975. The low tested the key level at 146.20 and held. A break down below support could see price test the 145.05 and 144.20 support levels. Resistance is at the 200 DMA and then 148.425. December Live Cattle also attempted to rally, it failed and settled near its low for the day. Major support in Live Cattle is at 113.90 – 113.55. A break down from here could see price test the 112.35 -112.075 support area. Resistance is at 116.55. Cut-outs continue to move lower from the 218.59 peak for choice cut-outs, down another 0.92 to 213.16 and select down 1.80 to 197.18. This could keep pressure on cash prices as margins are pressured and next week is a short kill week so packers may not be aggressive in their pursuit of cattle.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, November 16th 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.