The October Lean Hogs consolidated yesterdays decline, eating up most of its losses and settling near the high of the day. Wednesdays high is 66.95 and settlement is at 66.85. Still way below yesterdays high of 68.775. Also, an up-limit move will still be below Mondays 69.90 high. So a limit move is still consolidating the weeks range wow!! Even to the downside a limit move would be well within Mondays 61.50 low I expect this kind of trading action to continue until we gat some resolution on trade with China. A rally above todays high could see price test the Tuesday high at 68.775. A break down from settlement could see a re-test of support at 64.80 and then a re-test of todays low at 64.175.
October Live Cattle traded on both sides of the 50 DMA at 106.39. It made the high at 107.20, just below resistance at 107.30. The low was 105.675, just below the 50 DMA and support at 106.025. It settled just above the 50 DMA at 106.45. If settlement holds a re-test of resistance at 107.30 is likely. A break out above here could see price work its way up towards resistance at 108.65. A breakdown below support could see price test the 104.85 104.20 support area. The cash market traded a tiny amount on a live basis at 111.00 in Kansas and 113.25 in Nebraska at 113.25. Dressed sales took place at 183.00 in Nebraska. Boxed beef cutouts were higher for choice cutouts at 0.71to 216.49 and select was up 0.06 to 192.71 on moderate to fairly good demand and moderate offerings. The choice/ select spread widened to 23.78 and the load count was 152. Slaughter was 118,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, August 8at 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.
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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.