Live Cattle
The August Live Cattle contract opened (113.85) at the 200 DMA (113.975) on Tuesday, July 11, 2017 and dipped down to the session low (113.40) before moving higher for the remainder of the day. The rally took price to 115.425, which is right at moving average resistance. The 8 DMA is at 115.35 and the 13 DMA is at 115.575. A breakout above the Tuesday high could lead to a test of resistance at the 21 DMA (116.575). A breakout above here could see price test the 100 DMA at 118.075. Support remains at the 200 DMA and an inability to trade above the 13 DMA could see the August contract revisit support. Boxed beef cutout values were lower this afternoon on light demand and moderate offerings. Choice cutouts were down $2.30 to $215.24 and select down $2.16 to $200.51 on 139 loads. The choice/ select spread is at $14.73. Tuesday’s estimated slaughter is 120,000, higher than last week’s holiday slaughter of 2,000 and above last year’s 115,000.
Feeder Cattle
The August Feeder Cattle contract opened at 144.70 and traded down to the day’s low (144.075), before spending the rest day rallying and making the session high (148.00)at the end of the day. The rally took price above resistance at the 21 DMA (146.575) and trendline resistance at 146.60. The strong close put the bulls in control and a rally above the Tuesday high could lead to a test of resistance at 149.975. A breakout above here could see price test resistance at 152.30. Trendline support remains at 146.60 and a failure to hold this level could lead to a test of the Tuesday low.
Lean Hogs
The August Lean Hogs rallied off of the open (82.175) to the high of the day at 83.075 before stalling and then falling to test the low (82.00) of the day as it traded down to 82.05. It ended the session just above at 82.35. It formed an inside candle and a breakout above the high could lead to a test of resistance at 83.80 and then 84.825. A breakdown below the low could lead to a test of support at 81.475 and then 80.45. For those interested I hold a weekly livestock webinar on Friday, July 14 at 3:00pm. 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.