The February Lean Hogs contract is now the lead contract as its volume is higher than the December contract’s volume. It opened lower and broke down to the session low at69.65. This is just below the 69.80 support level. It recovered slightly and settled at 70.225. If settlement holds a recovery to resistance at 71.325 is possible. A break down below the low could see price test support at the declining 100 DMA at 69.10. Support then comes in at 68.75. The Lean Hog index ticked higher and is at 59.51 as of 11/14/2019. The Pork Cutout Index surged and is at 87.47 as of 11/15/2019.
The February Live Cattle contract is now the lead contract as its volume is higher than the December contract’s volume. It was a quiet session as it traded in a tight range from 125 .525 high to 124.325 low. Settlement was at 125.10. It is between resistance at 125.80 and support at 124.30. A break out above 125.80 could see resistance at 126.625 tested and then 128.10. A break down below 124.30 could see support tested at 122.825 and then 121.90. Cash was at a standstill. Boxed Beef cutouts were mixed on light to moderate demand and offerings. Choice cutouts fell 1.68 to 239.12 and select was up 1.26 to 215.59. The choice/ select spread narrowed to 23.53 and the load count was 103. Slaughter was 118,000.
January Feeder Cattle tested resistance at 145.05, making the high at 145.675 and made the low at support at the 21 DMA at 143.80. It settled at 144.475. A break down from the 21 DMA could see support tested at the 200 DMA now at 142.10. A rally above the high could see resistance tested at 146.20. The Feeder Cattle Index was lower and is at 146.69 as of 11/15/2019.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 21st 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.