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Livestock Report


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Live Cattle

The December Live Cattle contract took over as the lead contract on Thursday, September 21, 2017, as the volume was higher than the October contract. The session range was 116.90 high to 115.575 low, ending at 116.25, forming a Doji candle. It is above the 100 DMA (115.425) and the 200 DMA (115.475). The Doji candle indicates indecision and a trade below the moving averages could lead to a test of support at 114.425. A breakout above the high could see price move towards resistance at 119.25. The negotiated cash market was quiet. Sales this week have taken place between 106.50 and 106.75. We have the cattle on feed report Friday afternoon after the trading session. Thursday afternoon boxed beef cutout values were lower on Choice and Select on light to moderate demand and moderate offerings. Choice was down 0.53 to 191.51 and Select down 0.11 to 188.41 on 139 loads. The choice/ select spread dropped to a plus 3.10. The estimated cattle slaughter for Tuesday was reported at 118,000.

Feeder Cattle

The October Feeder Cattle consolidated near the Wednesday high on Thursday, unable to continue its upward push, ending the day just above support (156.025) at 156.20. A break down below the Thursday low (155.575) could see more consolidation within Wednesdays range (157.30 152.70). Staying above 156.20 could lead to a rest of the Wednesday high and then a move toward resistance at 159.975.

Lean Hogs

The December Lean Hogs contract broke down and traded below the 58.10 support level on Thursday, trading down to the low at 57.75 and ending the session at 57.80. Continued weakness could lead to a test of support at 56.15 and then 54.80. A short-covering rally on Friday could see a test of the downward sloping 8 DMA (59.45) and then 59.825 resistance.

For those interested I hold a weekly livestock webinar on Friday, September 22 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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