Commentary: April Live Cattle continued its slide on Wednesday, February 26th. It broke down, trading below the 200 DMA (113.19) to 112.025. The low came at the end of the session after settling at 112.35, which is right on support. Cattle couldn’t sustain any rally, failing at the 113.90 resistance level as it made its high at 113.825. The weakness in cattle was in opposition to both Hogs and Feeder Cattle as they both settled in positive territory. Beef cutout values are much lower than last year at this time and carcass weights are way above last year plus fears of potential spread of the coronavirus in the US continue to weigh on traders’ minds. Resistance is at the 200 DMA, 113.90 and then 114.65. Support is at 110.80 and then 109.60. Cash trade took place on the fedcattleexchange.com at 115.25 on a live basis. Boxed Beef cutouts were lower on light demand and heavy offerings. Choice cutouts decreased 1.13 to 206.34 and select was down 1.30 to 198.60. The choice/ select spread widened to 7.74 and the load count was 164. Slaughter was estimated to be 123,000.
Trade Suggestion(s):
N/A today
Risk/Reward:
Futures –
Options –
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursdays and our next webinar will be on Thursday, February 27th 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
bdicostanzo@walshtrading.com
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