February Live Cattle opened weak today piercing support at 121.90 and making the session low at 121.425. It recovered and rallied past the Friday high (123.30), making the high at 123.40 and settled at 123.20. It formed an outside day candle and a rally above 123.40 could see a retest of resistance at 124.30. A failure from the high could see price consolidate within the Monday range. Cash has traded even with the prior week with live sales from 121.00 to 123.00, depending on the region and dressed 194.00 to 195.00. March Feeder Cattle made a new low for the down move, trading below support at 142.40 to 142.00. It rallied off the low and matched Friday’s high at 144.425. It settled at 143.90. A rally past the high could see resistance at 145.05 tested and then 146.20. A break down below 143.50 could see 142.40 revisited. February Lean Hogs consolidated once again within last Wednesday’s range. A failure from the 61.25 low could see price test trendline support at 60.70 and then 60.375. A rally above the Monday high at 62.15 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 10th 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.* *
Senior Market Strategist
Walsh Trading, Inc.
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.