The December Lean Hogs opened unchanged and dipped to a new low for the down move. Hogs recovered and traded to the session high at 64.075, just below resistance at 64.25. It failed form here and broke down taking out the early low and making a new low for the down move at 62.675. It settled just above the low at 62.75. A break down below the low could see price test support at 61.80. Support then comes in at 59.825. A recovery from settlement could see price retest resistance at 63.325 and then the 64.25 – 64.80 resistance area. Resistance then comes in at the 21 DMA now at 65.21. The Lean Hog index rose and is at 59.55 as of 11/12/2019. The Pork Cutout Index surged and is at 85.16 as of 11/13/2019.
December Live Cattle consolidated Wednesday’s losses as it traded within its trading range. It ticked just below support at 117.80 making the low at 117.70 and the high was just above the 119.15 resistance level at 119.275. It settled at 119.075. A rally from settlement could see resistance tested at 120.75. Resistance then comes in at 121.90. A failure from settlement could see support revisited at 117.80 and the rising 21 DMA now at 117.39. Support then comes in at 116.55. Cash traded in Nebraska on a dressed basis at 182.00. Boxed Beef cutouts were lower on light to moderate demand and moderate to heavy offerings. Choice cutouts fell 1.28 to 241.06 and select was down 1.69 to 215.84. The choice/ select spread widened to 25.22 and the load count was 139. Slaughter was 118,000.
January Feeder Cattle tested support on the open as it made the low at the open price of 142.50 which is just above support at 142.40. It bounced and traded to resistance at 144.25, making the high at 144.45. It settled at 144.05. A failure from settlement could see price revisit support and the 200 DMA also at 142.40. A break down from here could see support tested at 140.775. If settlement holds consolidation within the upper part of Wednesday’s range is possible. The Feeder Cattle Index hasn’t been updated as I write my article. The most recent FCI rose and is at 147.44 as of 11/12/2019.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, November 15th 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.