Livestock Report

Ben DiCostanzoGeneral Commentary

Live Cattle

The August Live Cattle contract rallied at the open but couldn’t stay above the descending 8 DMA (122.20) on Tuesday, May 23, 2017, trading to the high of the day at 122.65, before breaking down and trading to the low of the day at 120.75. It spent the rest of the day consolidating between 122.50 and 121.00, settling at 121.325. A breakdown below the low could lead to a test of support at 120.075 and the 118.95. A rally above the 8 DMA could see a test of resistance at 123.30 and 124.75. Cash trade was at a standstill on Tuesday in all major feeding regions. Boxed beef cutout values were lower with choice down $2.14 to $245.74 and select down $1.66 to $221.17 on 144 total loads. Estimated slaughter was at 117,000 head on Tuesday.

For those interested I hold a weekly livestock webinar on Friday, May 26 at 3:00pm. 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.

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Ben DiCostanzo

Senior Market Strategist

Walsh Trading, Inc.

Direct: 312.957.4163

             888.391.7894

Fax: 312.256.0109

bdicostanzo@walshtrading.com

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.