The August Lean Hogs contract was under tremendous selling pressure on Monday. It was expanded limits day for hogs and sellers took advantage, pressing hogs and taking them down 3.95 from settlement to 73.95. It settled at 74.225. This right at the 74.25 support level. Breaking down below settlement could see price test support at 72.80. Is settlement holds then consolidation within the Monday range is possible. The Lean Hog Index declined and is at 79.14 as of June 20th. The pork cutout index dropped to 79.31 as of June 21st.
August Live Cattle consolidated for the most part within Friday’s trading range even though it made a nominal new low at 101975. Settlement was at 102.425. Support is at 101.625 and then 100.275. Resistance is at 103.00 and then the 104.20 – 104.85 area. The cash market was quiet. Boxed beef cutouts were mixed as choice cutouts were down 0.08 to 219.74 and select was up 0.26 to 199.81 on light to moderate demand and offerings. The choice/ select spread narrowed to 19.93 and the load count was large at 120. Slaughter was 121,000.
August Feeder Cattle continued its descent, trading down to 130.95 for the session low. Support is right there at 130.925. It settled at 131.775. Continued selling could see price test support at 129.65 and then 128.875. A rally above settlement could see price test resistance at 133.50 and then 134.25. The Feeder Cattle Index ticked higher to 131.47 as of June 21st.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 27th 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.* *
Senior Market Strategist
Walsh Trading, Inc.
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.