The April Live Cattle contract opened at 123.30 on Monday, March 12, 2018, made the session high at 123.475 then broke down and traded to the low of the day at 121.275. This is right near support at 121.325 and Friday’s low (121.125). It ended the day at 121.65. Live Cattle has been in a trading range for the past 4 trading days with the high at 123.675 (March 7) and the low at 120.90 (March8). It formed an inside candle. A break down below the Monday low could see support tested at 120.50 and then 119.15. Holding above 121.325 could lead to a retest of resistance at the 100 DMA (122.325) and then 123.125. The negotiated cash trade was at a standstill in all major feeding regions. Monday afternoon boxed beef cutout values were steady on Choice and Select on light to moderate demand and offerings. Choice was down 0.24 to 223.90 and Select was up 0.23 at 217.49 on 91 loads. The choice/ select spread narrowed to 6.41. The estimated cattle slaughter for Monday was reported at 113,000.
The April Feeder Cattle contract traded in the lower half of Thursday’s range and inside Friday’s range as it broke down from the open (143.70) and tested Friday’s low at 142.00. It made a slightly higher low (142.125) and ended the day at 142.50. A rally from 142.50 could see price test resistance at 143.50 and then a breakout above here could see price test resistance at 144.70. A break down below the low could see a test of support at 140.775.
The April Lean Hogs contract is consolidating between 68.325 and 66.425 (Wednesday’s Range). A break down below 66.425 could send price down towards support at 64.80. A breakout above 68.325 could lead to a test of the 21 DMA at 69.00. The 200 DMA is next at 69.60.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 15th 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.* *
Senior Market Strategist
Walsh Trading, Inc.
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.