June Lean Hogs gap consolidated within Tuesday’s trading range. Trading above the session high at 90.40 could see price test resistance at 92.375. A break down below the 87.575 low could see price approach the Monday low at 85.375. With mid-night Friday morning fast approaching, traders are hoping for news on the trade talks with China. This is the time new tariffs go into effect and traders are waiting to see whether or not the President delay the announced hikes.
June Live Cattle broke down and approached support at 110.80, making the low just above it at 110.925. This is a new low for the down move as the down trend continues. If price trades below support at 110.80, a test of the 108.65 support level is possible. If 110.80 holds, consolidation within Wednesday’s range is possible. The Cash market made some more sales on a live basis 120.00. Nebraska had some dressed sales at 195.00. Boxed beef prices continued to move lower as choice cutouts dropped 0.86 to 223.01 and select collapsed, dropping 4.34 to 207.49 on light demand and heavy offerings. He load count was 181. The choice/ select widened to 15.52. Slaughter came in at 122,000.
August Feeder Cattle continued to trade within Monday’s range, but this time in the lower part of the range. It tested support at 143.50, making the low at 143.325. It settled just above it at 143.875. A breakdown below Wednesday’s low could see price revisit the Monday low at 142.25. A failure to continue lower could see price move toward the upper part of Monday’s range.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, May 9th 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.