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Livestock Levels


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Live Cattle

The June Live Cattle contract made another new high on Wednesday, April 26, 2017, trading up limit before settling just below the limit move at 118.525. It traded and closed above the April 21st high (117.575) setting up a potential test of trendline resistance at 119.20. A break above the trendline could lead to a test of the January 19th high at 121.45. Support is at the April 21st high and then the 8 DMA (116.35). The fedcattleexchange online auction was held this morning with 5448 head for sale. There were 1,945 cattle sold with the bulk (1394) of them for 17 to 30 day delivery. The average price of for these cattle was 125.42. The rest of the cattle were for 1 to 9 (353 head) and 1 to 17 (158) day delivery. The average price for these cattle was 131.68 and 129.89 respectively. Box beef cutout prices saw Choice up 17 cents at 219.18 and Select down 55 cents at 205.72 on 135 loads. The estimated slaughter on Wednesday was 116,000.

Feeder Cattle

The August Feeder Cattle rallied and settled up limit at 145.85. This is just above the 145.15 resistance level. Staying above this level could lead to a test of resistance at 149.975, the August 2016 high. A breakdown from resistance could lead to a test of support at 144.175 and then 143.20.

Lean Hogs

The June Lean Hogs rallied early in the session, trading past the 21 DMA (71.925) to the high o f the day at 72.45. A late day breakdown took price past the 50 DMA (70.725) to the low of the day at 70.625. It settled just above the 50 DMA at 70 75. A breakdown from the 50 DMA could lead to a test of the 70.00 support level, and a continuation to the downside could retest support at 67.90. A bounce off the 50 DMA could see a retest of the 21 DMA and then the 72.875 resistance level.

For those interested I hold a weekly livestock webinar on Friday, April 28 at 3:00pm. 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.

Sign Up Now

Ben DiCostanzo

Senior Market Strategist

Walsh Trading, Inc.

Direct: 312.957.4163

888.391.7894

Fax: 312.256.0109

bdicostanzo@walshtrading.com

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.



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About the author


Ben DiCostanzo
Senior Market Strategist
Walsh Trading

I began my career in the Securities industry working as a runner on the floor of the New York Stock Exchange while I attended Pace University. I then started working for Salomon Brothers in their Government Bond Trading arena. After graduating from Pace University with a degree in Accounting, I transferred to Chicago and became a member of the Chicago Mercantile Exchange utilizing my experience to execute trades and manage risk for institutional clients as a broker for Salomon Brothers on the trading floor. I then embarked to trade for my own account in the stock indices pits as a local before moving off the floor to aid and assist individual clients in their trading endeavors. I now work at Walsh Trading holding a series 3 broker’s license whose duties include being the firm’s Chief Market technician.

I understand that every client's needs are different, and I pride myself in tailoring my service to each client's unique circumstances and needs. Individual client experience, risk tolerance, and capital all play a role in how I approach the markets. I am involved in all markets using technical analysis to find opportunities. My approach is driven by the principles of capital preservation.

My trading philosophy is that if you can recognize and manage the risk, you have a better chance to be successful in trading. I advise clients to always use stops as money management in my opinion is the most important ingredient in trading commodities.

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