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Livestock Report


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Live Cattle

The October Live Cattle contract traded in a choppy volatile range on Tuesday, September 5, 2017. It broke down to the early session low (104.35) before surging to the high (106.45) by mid-morning. The October contract then spent the rest of the day grinding lower, and it made a new low (104.30) for the day at the end of the trading session. It formed an outside day candle, but it is still within the Thursday trading range. A break down through the Thursday low (104.20) could see a test of support at 103.00. A bounce off the low could see a retest of resistance at 106.20. The negotiated cash market was quiet. Tuesday afternoon boxed beef cutout values were higher on Choice and weaker for Select on light to moderate demand and moderate offerings. Choice was up 1.10 to 192.45 and Select down 0.18 to 190.47 on 141 loads. The choice/ select spread widened to 1.98. The estimated cattle slaughter for Tuesday was reported at 117,000.

Feeder Cattle

The October Feeder Cattle also rallied off its early low (142.35), pushing higher to the high (144.925) and failing to stay above the 144.875 resistance level, as it broke down to the low (142.05) of the day at the sessions end. A break down from the August 30 low (141.90) could lead to a test of support at 140.775. A break below here could see price erode and test the 138.95 support level. A recovery off of support could see 143.50 revisited and then the Tuesday high.

Lean Hogs

The October Lean Hogs contract broke out above the 61.80 resistance level, the 8 DMA (62.075) and the 13 DMA (63.175), briefly trading up to the 3 handle limit (64.45) before dipping down to end the session at 64.05. It could test the 64.90 resistance level on Wednesday and then the 21 DMA at 65.275. Resistance then comes in at 66.75. Support will be at 63.325 and then the short-term moving averages.

For those interested I hold a weekly livestock webinar on Friday, September 8 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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