June Lean Hogs made an early attempt at a rally, reaching 89.80 for the session high and then reversing course and trading down to the low at 87.70. It settled at 88.225. It is holding ever so gingerly above support at 87.065 (50% retracement). If price can open strong and trade above resistance at 90.425, it could lead to a recovery to resistance at 93.50. This is the low end of the trading range from the high at 99.825 to the low at 93.525. Continued consolidation above the 50% retracement could lead to an eventual breakdown and a test of support at the rising 50 DMA now at 80.914.
June Live Cattle grudgingly broke down below the 114.65 support level, making the session low at 114.10 just above support at 113.90. A break down below support could lead to a teat of the 112.35 support level. If support holds, a rebound in price could lead to a test of resistance at 116.55.
August Feeder Cattle continued its swoon, trading to the low for the down move at 149.00. This is just below support at 149.15 and the 200 DMA (continuous chart) at 149.193. It settled at 149.15, right at support. This should key trade for Wednesday as a continued decline could see price test support levels at 148.40 and then 147.30. If support holds, price could test resistance at 149.975 and then 151.55.
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.* *
Senior Market Strategist
Walsh Trading, Inc.
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.