June Live Cattle consolidated in the upper end of its trading range on Monday. It poked its nose above resistance at 121.90, reaching the high at 121.925. It settled at 121.475. A breakout above 121.90 could see price test 122.825 and then work its way towards the 124.30 resistance level. A break down from settlement could see price test support at 120.80 and the 119.15.
June Lean Hogs also consolidated within the upper part of its trading range. It made its high at 99.40, unable to take out the 99.825 high from April 5th. It pulled back and settled at 98.30, just above the 61.8% retracement level of the all-time high and the October 2016 low. Resistance is just above the high at 100.075 and price would have to bust through here to re-energize Hogs. A breakout could see price test resistance at 101.975 and then move towards the 104.35 resistance level. A failure from settlement could see price test support at 97.30 and then 95.30.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, April 18 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.comRISK 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