Cattle markets continued its lethargic trading on Friday, October 19, 2018. Traders seemed to be reluctant to push price in any direction in front of the Cattle on Feed report, preferring to stay range bound. Cash trade was quiet also ahead of the report. Cash has traded between 109.00 and 111.00 on a live basis and dressed at 173.00 to 174.00. The Cattle on Feed report estimates were for on feed numbers to be up 6.3%, placements to increase .3% and cattle marketed to be down 3.5%. The actual numbers were for on feed up 5%, placements were down 5% and cattle marketed were down 4%. I think these numbers are bullish for the cattle markets and I expect the futures market to open higher on Monday. Boxed beef prices traded higher this week, up 6 bucks from last week and at its highest level since early September. This could be the kickoff to a seasonally inspired rally into early November.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, October 24th 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,
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.