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Livestock Report


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Live Cattle

The December Live Cattle contract gap opened lower and traded down limit on Monday, September 25, 2017. The low was 114.425 and a continued sell off from here could lead to a test of support at 112.425. Support then comes in at 110.80. A bounce from the low could see a test of the 200 DMA at 115.525 and a possible gap close at 115.65 (gap is from 115.65 to 115.20). Fridays cattle on feed report came in with a bearish tilt as expectations were for a placement decline of 3% and instead showed a 3% increase. The negotiated cash market was quiet. Monday afternoon boxed beef cutout values were higher on Choice and Select on moderate to good demand and light offerings. Choice was up 2.36 to 193.96 and Select up 2.16 to 190.89 on 86 loads. The choice/ select spread widened to a plus 3.10. The estimated cattle slaughter for Monday was reported at 118,000.

Feeder Cattle

The November Feeder Cattle broke down and traded down limit on Monday, ending the day below the 8 DMA (153.50). A break down below the 8 DMA could take price down to support at 152.30. Continued pressure could see a test of support at 149.975. A bounce off the 8 DMA could see price test resistance at 154.25 and then 156.025.

Lean Hogs

The December Lean Hogs contract rallied on Monday, trading up to 57.775 and ending the day near the high at 57.425. It formed a bullish engulfing candle and could lead to higher prices if it can trade above the 58.10 resistance level. Resistance is at the 8 DMA (58.85) and then the 13 DMA (59.625). Support is at 56.15 and then 54.80.

For those interested I hold a weekly livestock webinar on Friday, September 29 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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