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Livestock Report


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Live Cattle

The October Live Cattle contract consolidated within Tuesdays trading range on Wednesday, September 6, 2017. Bears couldnt take price down below the Thursday low (104.20), but bulls couldnt sustain rallies as each attempt was sold. Resistance is at the declining short-term moving averages (the 8 DMA (105.90), 13 DMA (106.10) and the 21 DMA (106.75)). The session high was 105.45. A rally above the high could lead to a test of resistance. A break down through the Thursday low (104.20) could see a test of support at 103.00. The fedcattleexchange.com auction took place with 1,240 head for sale. Sadly there were few cattle sold. The one trade for live that took place at 103.25 was passed over by the producer. There was one sale for dressed at 163.00; with 125 head sold. Packers wouldnt participate on minimum bids at 104.00 for live and 168.00 for dressed. The negotiated cash market was quiet. Wednesday afternoon boxed beef cutout values were higher on Choice and Select on moderate to fairly good demand and moderate offerings. Choice was up 0.48 to 192.93 and Select down 0.20 to 190.67 on 168 loads. The choice/ select spread widened to 2.26. The estimated cattle slaughter for Wednesday was reported at 116,000.

Feeder Cattle

The October Feeder Cattle rallied off its early low (142.225), grinding higher throughout remainder of the session and reached a high at 144.075. It ended the day at 143.975. It closed above the short-term moving averages (the 8 DMA (143.70), the 13 DMA (142.625), and the 21 DMA (142.80)) and the 143.50 support/ resistance level. A rally above the Wednesday high could lead to a test of resistance at 146.20. 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.

Lean Hogs

The October Lean Hogs contract spent the session consolidating near the Tuesday high. It formed an inside candle with the high at 64.35 and the low at 63.25. A breakout above the high could see the 64.90 level tested and then the 21 DMA at 65.05. Resistance then comes in at 66.75. A break down through the low could see a test of support at the short-term moving averages (the 8 DMA (62.05) and the 13 DMA (62.925). Support then comes in at 61.80.

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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