June Lean Hogs traded in an uninspiring fashion, dipping to a new low at 91.55 and nearly closing the gap from the April 2nd high at 91.50 to the April 3rd low at 92.10. The failure from another attempt to close the gap could only muster a small rally leaving a narrow trading range and a small bodied candlestick. This is the smallest trading range in the past seven sessions and could lead to volatile session on Thursday. It settled at 92.775. A rally off of settlement could see price test resistance at 93.50. Trading above here could see price move towards the declining 21 DMA, now at 94.852. Continued pressure could see price test support at 90.425.
June Live Cattle broke down hard on Wednesday, nearly going down limit. It took out the low of 118.70 – 122.975 trading range and settled at 118.35. It is also below the 200 DMA (119.07) on the continuous chart and sets up a possible test of support at 117.725 and then 116.55. A rebound above the 200 DMA could see price consolidate within the Wednesday trading range.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, April 25 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.