The start of the new week saw the cattle markets trade within their Wednesday trading ranges. January Feeder Cattle is consolidating between the Wednesday high at 150.00 and support at 148.425. Aggressive traders could buy a breakout above 150.00, expecting the market to test resistance at 151.55 and then 152.30. Place stops in accordance to your account size and risk tolerance. If Feeders break down below support a test of support at the 200 DMA (147.70) is possible. Conservative traders can buy a pullback to support, looking for the 200 DMA to hold and price to make its way higher from here. Place stops below the 200 DMA on a closing basis. If February Live Cattle can trade above 121.475, buy the break out looking for price to test resistance up at 122.80 and then 124.25. Place stops in accordance to your account size and risk tolerance. A break down below 120.025 could lead to a test of support at 119.15. Cash traded on Wednesday, before the Thanksgiving holiday with packers aggressively paying up for cattle. Live cattle traded between 112.00 – 117.00 and dressed cattle traded between 180.00 – 185.00. Sales were limited on Friday. Cutouts were firm on Monday with choice up 0.60 to 214.45 and select up 1.28 to 199.79, and the choice/ select spread narrowed to 14.66 on 64 loads.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, November 29th 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.