The October Lean Hogs contract attempted to consolidate its losses early in the trading session but weakness won out with Hogs trading to a new low for the down move at 65.475. It made the session high at 69.30 and it settled near the low at 65.725. Continued weakness could see price test support at 64.80 and then 63.325. If support holds resistance can be tested at 66.55 and then 67.80. The Lean Hog Index continues to surge and is at 84.11 as of July 31st. The pork cutout index also surged and is at 86.31 as of August 1st.
October Live Cattle tried to hold support at 108.65 early making the high at 109.125 but it failed and broke down and traded to the low at 107.65. This is still above the 107.30 support level and it settled at 107.825. Continued weakness could see price test support at 106.025. If support holds a return to resistance at 108.65 is possible. The cash market traded from 182.00 – 185.00 on a dressed basis in the North. It traded at 111.00 in the South and from 113.00 to 115.00 in the North. Boxed beef cutouts were higher as choice cutouts were up 0.49 to 214.73 and select was up 1.29 to 190.63 on moderate demand and offerings. The choice/ select spread narrowed to 24.10 and the load count was 98. Slaughter was 114,000.
September Feeder Cattle moved sharply lower, nearly going down limit from yesterday’s settlement. It traded to the low at 137.30 and a last-minute rally took price higher to settle at 138.225. Support is at 136.75 and then 135.60. A rebound from settlement could see price test resistance nearby at 13895 and then 140.775. The Feeder Cattle Index declined to 141.74 as of August 1st.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, August 8 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.