December Live Cattle struggled on Monday, October 29, 2018. With cash trading as high as 115.00 on Friday, traders were hoping for price to challenge the higher end of the trading range. When it couldn’t trade above the Friday 118.80 high, sellers were able to put pressure on price. It couldn’t take advantage of Friday’s strong trade in both the cash and futures markets and fell back into the middle of the 116.025 – 119.75 trading range. It settled at 117.25, below the key level at 117.725 and formed an inside candlestick. A break out above the 118.75 could lead to a test of resistance at 119.15 and 119.75. A break down below the 117.025 low could see price revisit support at 116.55 and then the 116.025 low. Boxed beef cutouts continued to move higher as choice cutouts were up 0.29 to 213.76 and select broke 200.00, rising 2.28 to 201.11 on 91 loads. Slaughter was estimated to be 117,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 1st 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.