Cattle and hog markets consolidated today in a quiet trading session. April Live Cattle resistance remains at 128.10 and support is at 126.625. Trading above 128.10 could see price test the Thursday high at 129.475. A breakdown below 126.625 could see support tested at 125.80. Support then comes in at 124.30. March Feeder Cattle stayed within Monday’s trading range. It settled at 143.175 which is just below the 143.50 support level. Resistance is at the declining 50 DMA at 144.902. A rally above the 50 DMA could see price test resistance at 146.20. Resistance then comes in at 147.30. Trading below settlement could see price make its way to support at 142.40. Support then comes in at 140.775. April Lean Hogs stayed within Monday’s range and settled at 60.90 which is below the 61.80 support level. Continued weakness could lead to a test of the Monday low at 59.65. A recovery above settlement could see price move toward the 200 DMA (63.197) and the 50 DMA (63.414.
A hedge idea for cattle producers – buy the April 124 put and sell the 131 call at even money plus commission and fees.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, February 7th 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.