rounded corner
rounded corner
top border

Livestock Report


Bookmark and Share

Live Cattle

The December Live Cattle contract powered its way higher on Tuesday, October 24, 2017. It opened at 116.825, pulled back slightly to 116.575, just above the key pivot (116.55) level and then bulldozed its way through the October 13 high (117.575) on its way to the session high at 119.70. It ended the day above the 119.15 resistance level at 119.525. If price can follow through on Wednesday a test of resistance at 120.575 and then 121.325 is possible. An inability to follow through higher could lead to consolidation within the Tuesday range. The negotiated cash market was quiet on Tuesday. The fedcattleexchange.com auction is on Wednesday with a dwindling number of cattle for sale. It is still a time when we can see the picture packers are trying to paint as they act or dont or dont act on the minimum bids posted during the auction. Tuesday afternoon boxed beef cutout values higher on Choice and Select on moderate to fairly good demand and light to moderate offerings. Choice was up 0.88 to 200.13 and Select was up 1.64 to 192.69 on 133 loads. The choice/ select spread narrowed to a plus 7.44. The estimated cattle slaughter for Tuesday was reported at 117,000.

Feeder Cattle

The January Feeder Cattle contract opened (150.775) just below the Monday settlement price (150.875), dipped down to the session low at 150.075 and then took off, rallying all the way to 155.325, just shy of going limit up. It took out the 152.30, 153.50 and 154.25 resistance levels on its way up to the high. These levels now become support. A continuation higher will test resistance at 156.20 and then trendline resistance at 156.70. Besting this area could lead to a run to the 159.975 resistance level. If the 156.20 156.70 area is too tough to overcome the consolidation within the Tuesday range and the aforementioned support levels is possible.

Lean Hogs

The December Lean Hogs contract opened (63.50) at the Tuesday low (63.45) and dipped down towards the rising 13 DMA (62.85) making the session low at 62.95. It found support here, traded above the 63.325 support level and rallied to the high of the day at 64.375. Breaking down from the 63.325 support level could see the rising 13 DMA and trendline (62.90) tested. Support then comes in at the 50 DMA (62.025) and 61.80. A rally above the high could see price revisit resistance at 64.80 and then 66.50.

For those interested I hold a weekly livestock webinar on Thursday, October 26 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.



Recent articles from this author



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.

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy