Live Cattle
The October Live Cattle contract rallied from the open (113.375), approaching the 200 DMA (114.70) on Wednesday July 26, 2017, making the high of the day at 114.225 in front of the fedcattleexchange auction. The auction had 2,119 head for sale, with 772 sold. Prices ranged from 117.50 to 118.25. After the auction, futures turned lower as cash trading after the auction was reported at 117.00 to 117.75, disappointing traders hoping for higher cash prices. Live Cattle traded down to its session low (112.175) before finding support and consolidating around the low. A late day rally took price higher, and the October contract settled at 113.375. Wednesday’s session took out the July 6th low (112.425) but not by much. It formed a Doji candle, indicating indecision at the new low. Resistance is at the 200 DMA and then the 21 DMA (115.825). Support is at 110.80. For Wednesday afternoon boxed beef cutout values were weak to lower on light to moderate demand and offerings. Choice was down 0.55 at 207.07 with Select down 1.06 to close at 197.87 on 144 loads. The hide and offal value from a typical slaughter steer for today was estimated at 11.66 per cwt live, up 0.03 when compared to Tuesday’s value. Estimated cattle slaughter for today is 119,000, last week 117,000 and a year ago 112,000.
For those interested I hold a weekly livestock webinar on Friday, July 28 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.