In a quiet trading session April Live Cattle consolidated between resistance at 126.625 and support at 125.80. A break out above resistance could lead to a test of the January 16th high at 127.80. A failure from the low could see price test support at 124.30. Cash trade remains quiet as packers seem content to wait until late Friday to make the bulk of their purchases. A minimal amount has traded this week in a wide range from 122.00 to 125.00. Cutouts are firm as choice increased 0.54 to 217.75 and select up ticked 0.10 to 212.14 on moderate demand and offerings. Packers remain in control of the market as they have cut slaughter levels and retailer demand has cutouts at higher levels than usual for this time of year. Carcass weights are dropping as winter weather is here but because of the government shut down, the weight declines can only be guessed. March feeder Cattle rallied to resistance at the 21 DMA (144.666), making the high just below it at 144.625. A breakout above the 21 DMA could see price test resistance at the 50 DMA (145.49). Support is at 143.50. April Lean Hogs broke down below the 200 DMA (63.89) and tested support at 63.325, making the low at 63.425. Continued pressure in Hogs could see price test support at 61.80. A recovery could see price test resistance at 64.80.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, January 25th 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.