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Livestock Report


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Live Cattle

The December Live Cattle contract consolidated on Monday, October 16, 2017. It formed a doji candlestick while testing support at the 116.55 level, making the low at 116.525. It made the high at 117.525, just above the 8 DMA (117.40). It ended the session in between at 117.10. A breakdown below 116.55 could lead to a test of support at the 200 DMA (115.625) and then 114.25. A break out above the 8 DMA could lead to a test of the 119.15 resistance level. The negotiated cash market was quiet. Monday afternoon boxed beef cutout values were higher on Choice and Select on moderate demand and light offerings. Choice was up 0.59 to 198.81 and Select was up 0.52 to 190.57 on 97 loads. The choice/ select spread widened to a plus 8.24. The estimated cattle slaughter for Monday was reported at 110,000.

Feeder Cattle

The November Feeder Cattle also consolidated on Monday, trading below the156.025 resistance level and above the 154.25 support level. The session range was 155.70 for the high and 154.375 for the low. It ended the day at 155.025. Taking out the 156.025 resistance level could see price test resistance at 157.30 and then 159.975. Breaking down from the session low could see price test support at 153.50 and then 152.30.

Lean Hogs

The December Lean Hogs contract opened (62.50) just below the 50 DMA (62.575) and dipped to the session low (62.30) before grinding its way higher and taking out the 63.325 resistance level. It broke out to a new high at 63.875 and ended the day nearby at 63.825. 64.80 is the next level of resistance and a break out above here could see price test the 66.55 resistance level. A break down from the high could lead to a test of support at the 50 DMA and then 61.80.

For those interested I hold a weekly livestock webinar on Friday, October 20 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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