Cattle markets consolidated within their Tuesday trading ranges today as the markets digested the rally. February Live Cattle has resistance at 125.80 and then 126.625. An inability to rally could see consolidation continue in the February contract. A March Feeder Cattle rally past the Tuesday high could see strong resistance at 147.30, the previous high (147.575) and the 200 DMA at 147.85. A failure to push higher could continue the consolidation within the Monday range. February Lean Hogs broke out above last Wednesday’s high (63.425), making a new high at 64.10. This is just below resistance at the 200 DMA at 64.50. A continuation higher could see a push past the 200 DMA and a test of resistance at 66.55. An inability to rally past the 200 DMA could see consolidation around the 200 DMA.
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.