Live Cattle
The October Live Cattle contract broke down below the 200 DMA (114.65) on Tuesday July 25, 2017, making its way down to test support at the July 6th low (112.425) with the session low at 112.65. A break down below the July 6 low could see price test support at 110.925. Resistance is at the 200 DMA. On Tuesday negotiated cash trade was mostly inactive on light demand in all feeding regions. Tuesday afternoon boxed beef cutout values were steady on Choice and higher on Select on light to moderate demand and offerings. Choice was up .16 at 207.62 with Select up 1.04 to close at 198.93 on 113 loads. The hide and offal value from typical fed cattle for today was estimated at 11.45 per cwt live, down 0.04 from Monday’s value. The estimated cattle slaughter for Tuesday was reported at 118,000. The fedcattleexchange online auction is on Wednesday morning at 10 AM CT. There are 2,119 head for sale.
Feeder Cattle
The August Feeder Cattle contract continued to sell off on Tuesday, breaking down and testing support at the 147.05 – 146.025 area, with the session low at 146.30. A breakdown below here could lead to a test of support at the 100 DMA at 143.95. A rebound from Tuesday’s low could see a test of resistance up at 148.45.
Lean Hogs
The October Lean Hogs is below resistance at 67.80. It formed a spinning top candle after a bullish hammer candle. A breakout above the Wednesday high (67.225) could lead to a rally above resistance (67.80) and a test of resistance at 68.35. A break down from the low (66.625) could lead to a test of support at 65.80 and then 64.90.
For those interested I hold a weekly livestock webinar on Friday, July 28at 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.