June Lean Hogs traded to a new low for the recent down move on Monday, April 29, 2019. It slid to 87.025, just below the 50% retracement of the all-time high (133.425) to the Oct 2016 low (40.70) at 87.0625. It settled at 88.05. This is an important level in my opinion as falling below here and then taking out the 86.25 low from April 1st could lead to a test of support at the rising 50 DMA, now at 80.346. If support holds, a test of resistance at 93.50 is possible.
June Live Cattle is at the 114.65 support level, making a new low at 114.60 and settling at 114.80. It formed a narrow range candle in a quiet trading session as traders were tentative at support. A break down below support could lead to a teat of the 113.90 and 112.35 support levels. If support holds, a rebound in price could test resistance at 16.55.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, May 2nd 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.