June Lean Hogs consolidated on Monday after making a new high for the up move on Friday. It formed an inside candle and settled (98.15) slightly above resistance at 98.00. The new high is at 99.825 which is just below resistance at 100.075. A break out above the Monday high (98.925) could see resistance challenged. A break down below the 96.85 low could support tested at 95.80 and then the rising 13 DMA which is now at 94.198.
June Live cattle has pulled back into its trading range earmarked by resistance at 120.75 and support at 119.15. It has formed its second inside candle in a row, trading within Friday’s range which traded within Thursday’s range. Thursday saw an attempt to break out above the trading range as it tested resistance up at 121.90. A break out above the 120.80 high could see price revisit the Thursday high (121.90). A break down below the 119.725 low could see 119.15 tested and then the rising 200 DMA now at 118.199. From USDA: On Friday, negotiated cash trade and demand in the Northern Plains and Western Cornbelt was moderate. Compared to last week in Nebraska, live purchases mostly steady at 126.00-126.50, bulk at 126.00. Dressed steady to 2.00 lower at 204.00-206.00. In Colorado, compared to last week sold steady at 126.00. Last week in Nebraska, dressed purchases were at 206.00. In the Western Cornbelt a few purchases mostly steady compared to the bulk of trade throughout the week, at 127.00-128.00 and 204.00-206.00. Trade limited on light demand in the Southern Plains with live purchases steady at 124.00 when compared to Wednesday. On Monday, boxed beef cutout prices were higher a choice increased 1.74 to 228.67 and select rose 0.60 to 220.88. Demand was moderate to fairly good and offerings were heavy. There were 117 loads and the choice/ select spread widened to 7.79. Slaughter was 120,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, April 11 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.