rounded corner
rounded corner
top border

Livestock Report


Bookmark and Share

Live Cattle

The October Live Cattle contract was quiet most of the trading session on Tuesday August 1, 2017, trading in a tight range (112.725 11.55) most of the trading session. A late day rally took the October contract past the high, reaching 113.20 at the end of the session. This sets up a potential test of resistance at 113.80 for Wednesdays session and breakout above here puts a test of the 200 DMA (115.00) in focus. The Feeder Cattle market set the tone for the cattle markets as they opened strong and grinded higher all day. The strength in the cattle futures markets on Tuesday could set a positive tone for the fedcattleexchange live cattle auction on Wednesday. The head count for the auction is very low, with only 1,063 head for sale. Last week’s auction traded between 117.50 and 118.25. The cash market ended up on a weak note, trading down to 117.00 on Friday. Trading started on Monday with some 115.00 trades taking place. Today’s rally could lend some support to the cash market. Support is at 110.80 and 108.675. Tuesday afternoon boxed beef cutout values were lower on Choice and higher on Select on light to moderate demand and offerings. Choice was down .34 at 205.41 with Select up 0.45 to close at 198.29 on 121 loads. The choice/ select spread narrowed to 7.12. The estimated cattle slaughter for Monday was reported at 119,000.

Feeder Cattle

The August Feeder Cattle contract opened on a strong note (146.90) and grinded higher early on Tuesday, testing resistance at 148.60, retracing back to the open price range, and then raced past the high (148.40) during the last 45 minutes of trading. It set a new high in the last 5 minutes of the day at 149.625, just below the 149.975 resistance level. A breakout from here could see a test of resistance at the 152.30 level. There is a gap just above the Tuesday high from 149.75 to 151.80. Support is at 148.30 and then 147.475.

Lean Hogs

The October Lean Hogs traded down past the 64.90 support level and closed on a weak note. It ended the session below support at 64.375. A break down below the Tuesday low (64.225) could send Hogs down toward the 61.80 support level. Resistance is at 64.90 and then 65.80.

For those interested I hold a weekly livestock webinar on Friday, August 4 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

**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

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.



Recent articles from this author



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.

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Legal  •   Privacy Statement