The July Lean Hogs contract consolidated within Monday’s trading range. It traded in a narrow range with the high at 85.5925 and the low at 84.25. A rally above the high could see price test resistance at 87.06. A break down below the low could see price test support at 83.325. Support then comes in at 81.15. The Lean Hog Index declined and is at 81.28 as of May 31st and the pork cutout index climbed to 83.84 as of June 3rd.
August Live Cattle held support at 103.00 with the low just above it at 103.075. It rallied to test resistance at 104.85 making the high just below it at 104.675. It settled at 104.05. A breakout above 104.85 could see price test resistance at 106.025. A break down below 103.00 could see price test support at 101.625. The cash market has traded early this week with sales in Texas and Kansas at 113.00 on a live basis. Boxed beef cutouts were mixed as choice cutouts were down 0.20to 223.00 and select up 0.34 to 207.21 on moderate to fairly good demand and moderate to heavy offerings. The choice/ select spread narrowed to 15.79 and the load count was 140. Slaughter was 120,000.
August Feeder Cattle had a strong rally today nearly going limit up for the day. The rally however did nothing but stay in Friday’s trading range. It settled above resistance (136.75) at 137.45. Continued strength could see price test resistance at 138.95. Resistance then comes in at 140.775. A failure from settlement could see price consolidate within Tuesday’s range. The Feeder Cattle Index fell to 131.95 as of June 3rd.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 6th 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.