June Lean Hogs made a meek attempt at testing the 87.0625 support level, as it opened lower and dipped to 87.55 for the session low. Hogs pivoted and surged higher, going limit up for the day, settling up limit (91.225) and setting up 93.50 as the target for Thursdays’ trade. Hogs will have expanded limits for trade on Thursday (4.5 handles). If the bullish sentiment is strong a test of resistance at 95.30 is possible. A wary market could see price consolidate within the Wednesday range. Positive trade talk news made its way over the airwaves reigniting bullish traders’ hopes for further gains in price. Export sales are out in the morning on Thursday. Traders’ will be looking for sales to China.
June Live Cattle continued its creep lower. It traded below the 113.90 support level making the low at 113.775 and then settling at 113.875. It did make an early attempt to rally trading up to the 114.65 (now) resistance level, making the session high at 114.775. Continued pressure could see the 112.35 support level tested. Resistance remains at 114.65. Cash traded on Tuesday, with live sales at 122.00 – 123.00 in Kansas, 123.00 in Texas and 124.00 in Nebraska. Nebraska also saw dressed sales at 200.00. The western cornbelt saw dressed sales at 198.00 – 201.00. Cash traded higher last week at 126.00 for live cattle and mostly at 205.00 for dressed.
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.