Commentary:
CATTLE
The Live market under considerable pressure again today. The cutout values declining considerablly in the last 10 days. There are concerns that are real that the slaughter will continue to slow. The numbers for the week prove this is grounded in reality. The shutting of the JBS plant is of concern as well and falls in line with the trend. The futures followed through to the down side as I suggested could happen. The tech in live is below the 14,21 MA. However, recent lows have held. Look for those lows to be tested. If they hold the market has some room until it becomes a buy. If the market takes out recent lows look for further weakness to accelerate. The Feeder market, like Live, followed through to the down side. The feeder market cash is off 8$ from a week ago. The expectation is for further weakness potentially. The tech follows the live, well bellow the 14,21 MA, but above recent lows.
HOGS
There remains little to be said about Hogs that I have not said. The overall meat production is weighing. The hog numbers are too plentiful regardless of the Chinese demand. The tech today followed through as I said should. The market is in free fall and well below the 14,21 MA. Look for a bit more down until the market finds support. The 2016 lows should be challenged. Patience now and time.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
800-993-5449
312-208-8836
[email protected]
www.walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.