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Livestock Report


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Live Cattle

The October Live Cattle contract broke down through Mondays low on Tuesday, August 8, 2017, trading down to 110.175 and ending the session near the low at 110.40. It closed below the 110.80 support level and the next support level to challenge is the April 5th low at 108.675. Resistance is at 112.425 and 113.70. The failure to hold the line in the futures market has allowed packers to buy cattle cheaper in the cash market with live sale taking place mostly between 115.00 and 116.00. There was a small amount traded at 114.00 in Iowa. The fedcattleexchange auction is on Wednesday morning and there are 1,659 head for sale. Tuesday afternoon boxed beef cutout values were lower on Choice and Select on light to moderate demand and offerings. Choice was down .47 at 202.25 and Select down 0.14 to close at 196.86 on 149 loads. The choice/ select spread narrowed to 5.39. The estimated cattle slaughter for Monday was reported at 119,000.

Feeder Cattle

The September Feeder Cattle contract broke down and is challenging the 100 DMA (146.225). The session low is 145.80 and it ended up the day at 146.225 (right on the 100 DMA). Trendline support is nearby at 145.65 and a break down from here could lead to a test of support at 144.65. Support then comes in at 141.20. Resistance is at 147.625 and then 149.975.

Lean Hogs

The October Lean Hogs contract tested the 200 DMA (68.725) and the 67.90 support level, trading up to 68.90 and down to 67.70. It was an uneventful day with the small range and tiny candle body. A break out above the Tuesday high could lead to a test of resistance at 69.90. Trading below the low could see a test of support at 66.75.

For those interested I hold a weekly livestock webinar on Friday, August 11 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.



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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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