The October Lean Hogs contract consolidated yesterday’s gains, trading down to support at 80.40 making the low just below it at 80.375. It made the high at 81.975. It settled at 80.85. A failure from the low could see price test support at 79.80 and then the rising 21 DMA now at 79.11. Support then comes in at 77.80. A rally above the high could see price test resistance at 83.325. The Lean Hog Index surged again and is at 74.29 as of July 22nd. The pork cutout index jumped to 78.50 as of July 23rd.
October Live Cattle continued to grind higher and made the session high at 110.175. This is a new high for the up move for the lead contract. The low was 109.425. It settled 109.90. If cattle can rally above the high, a test of resistance up at 110.80 is possible. A failure from the low could see price revisit the 108.65 support level. The cash market was quiet. Boxed beef cutouts were lower as choice cutouts were down 0.18 to 213.60 and select was down 0.29 to 189.42 on light to moderate demand and offerings. The choice/ select spread widened to 24.18 and the load count was 141. Slaughter was 122,000.
August Feeder Cattle grinded higher today, passing resistance at 142.40 and making the session high at 142.95. It made the low at 141.45 which is just above the 13 DMA at 141.38. It settled at 142.825. A rally above the high could see price resistance143.50. The high for the up move is at 143.75. resistance then comes in at 142.25. A break down below settlement could see price retest support at the 13 DMA. Support then comes in at 140.775. The Feeder Cattle Index dipped to 136.71 as of July 23rd.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, July 25th 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.