Walsh Trading Daily Insights
Commentary
April Feeder Cattle made a new high since taking over as the lead contract and was able to hold onto the gain. It traded up to 195.45 with the low at 193.95 and settlement at 195.075. The high was just above resistance at 195.45 as Corn was weak all session, tumbling below support which helped drive Feeders higher, but one again resistance held as futures are trading at a high premium to the Feeder index and may be too extended. If Feeders take out resistance at 195.40, it could move towards resistance at 197.975. A failure from settlement could see price revisit support at 193.00. Support then comes in at 190.60.
The Feeder Cattle Index increased and is at 182.62 as of 02/27/2023.
April Live Cattle continued its consolidation within Friday’s trading range, making the high at 165.725 and the low at 164.65. Settlement was near the high at 165.475. Traders are waiting on cash and cash isn’t expected to gather steam until the end of the week. There was some cash trade taking place at 165.00, so it’s a good start but no volume. Futures are leaning on support at 164.90 and must maintain this level or we could see a break down to support at 162.75. Resistance remains at 166.975.
Boxed beef cutouts were higher for choice cutouts, which increased 0.61 to 288.95 and select was unchanged at 279.25. The choice/ select spread widened and is at 9.71 and the load count was 97.
Tuesday’s estimated slaughter is 126,000, which is below last weeks and last year’s 127,000. The estimated total for the week (so far) is 250,000, which is above last week’s 231,000 and below last year’s 252,000.
The USDA report LM_Ct131 states: So far for Tuesday negotiated cash trading has been a standstill in the Southern Plains and Nebraska. In the Western Cornbelt negotiated cash trading has been limited on very light demand. In the Western Cornbelt, a few live purchases traded at 165.00. However, not enough purchases for a full market trend. For the previous week in these regions live purchases traded mostly at 164.00. Last week in Nebraska dressed purchases traded at 262.00. For the prior week in the Western Cornbelt dressed purchases traded from 260.00-262.00.
The USDA is indicating cash trades for live cattle at 165.00 and nothing on a dressed basis (so far).
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursdays (except holiday weeks) and our next webinar will be on Thursday, March 02, 2023 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
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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