The July Lean Hogs contract consolidated within the 92.375 resistance and the 90.45 support levels. The high was just below resistance at 92.25 and the low was just below support at 90.30. It settled at 91.05. A rally above the high could see price test resistance at 93.50. A breakdown below the low could see price test support at the 13 DMA now at 89.59 and then move toward the 88.325 support level. The Lean Hog Index fell to 84.37 as of May 20th and the pork cutout index dipped 0.34 to 86.43 as of May 21st.
August Live Cattle stayed above the 107.30 support level with its low at 107.50. Its high was below the 108.65 resistance level at 108.55. It settled at 107.95. It formed a spinning top candlestick in a lackluster trading session. A rally past 108.65 could see price move toward resistance at 110.80. A failure from settlement could see price test support at 107.30 and then 106.025. The cash market traded in Texas and Kansas on a live basis from 114.00 to 115.00. This is 1.00 to 2.00 lower than last week. Boxed beef cutouts were mixed as choice cutouts up 0.17 to 219.75 and select down 0.77 to 205.81 on light to moderate demand and moderate to heavy offerings. The choice/ select spread widened to 13.94 and the load count was 178. Slaughter was 120,000.
August Feeder Cattle traded past support at 142.40 to the session low at 141.90. It traded up to resistance at 143.50 with the high just below it at 143.35. It settled at 142.60. If price can recover and trade past 143.50 a retest of resistance at 144.20 and 145.05 is possible. A breakdown below the142.40 support level could see price test the 140.775 support level. The Feeder Cattle Index is at 132.16 as of May 21st.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, May 23rd 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.