February Live Cattle continued its downward trek today piercing support at 122.825 and making the session low at 122.35. It was able to bounce from here and settled at 123.225. A break down below the Thursday low could see price test support at 120.75. If settlement holds and the 123.875 high is taken out price could revisit the 124.95 high. Cash has traded at 123.00 on a live basis in the Southern Plains. Cutouts dipped 0.15 to 216.49 for choice and were down 1.53 to 209.38 for select on 149 loads. The choice/ select spread widened to 7.11. March Feeder Cattle broke down from the open testing support at 144.20 while making its low just below it at 144.05. It settled just above support at 144.45. A failure from 144.20 could see price test the 143.50 support level. Support then comes in at 142.40. A bounce off of support could see resistance at 145.05 tested and then 146.20. February Lean Hogs consolidated within the Wednesday range. A failure from the 61.95 low could see price test support at 61.80 and then yesterday’s low at 61.25. A rally above the Thursday high at 62.725 could see resistance tested again at 63.325.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, January 4th at 2:30 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.