rounded corner
rounded corner
top border

Livestock Report


Bookmark and Share

Live Cattle

The February Live Cattle contract tested the 123.125 resistance level early in the trading session on Tuesday morning, trading to the session high at 122.625. It broke down from here trading through support at 121.20 and 120.50 on its way to the session low at 119.575. This is just above the 119.15 support level. It formed an outside day candle, showing the volatility during the trading session. It ended the day 1t 120.40, just below the 50 DMA (120.425). Holding above ther 120.425 120.50 zone could see a rally to the 121.20 resistance level. A break out above here could see price test the Tuesday high. Resistance then comes in at 123.125 and 124.85. A breakdown from the zone could lead to a test of support at 119.15. Key support then comes in at 117.75. The negotiated cash trade was quiet. Tuesday afternoon boxed beef cutout values were higher on Choice and Select on light to moderate demand and offerings. Choice was up 0.89 to 209.08 and Select was up 1.09 to 186.63 on 110 loads. The choice/ select spread narrowed to a plus 22.45. The estimated cattle slaughter for Tuesday was reported at 120,000.

Feeder Cattle

The January Feeder Cattle contract tested the 100 DMA (150.975) early in the trading session, making the session high at 151.10. It failed and broke down below the 149.975 support level, trendline support (149.325), and the 147.35 support level on its way to testing the 200 DMA (146.35). It made the session low at 146.05. It almost went down limit, missing it by 0.60. It was able to recover and traded above the 200 DMA and the key 147.35 level. It ended the day at 147.725. This will be key for Wednesdays trade, in my opinion. It formed an outside day candlestick, indicating the volatility in the market. Holding above the 147.35 level could lead to a test of resistance at the rising trendline (149.425). A rally above the trendline could see price revisit the above resistance levels. A breakdown below the rising trendline could lead to a retest of the rising 200 DMA (146.35).

Lean Hogs

The February Lean Hogs contract opened above the 71.325 key level at 71.70, but couldnt even trade past the Monday high (71.80) as it failed and broke down to support. It traded down to the 200 DMA (70.325), making the low at 70.15. It ended the day just above the 200 DMA at 70.35. Holding above the 200 DMA could lead to a test of resistance at 71.325. A breakout above here could take price to resistance at 72.25. A failure from the 200 DMA could see a test of the 69.90 support level. A break down from here could test support at the rising 13 DMA (68.45).

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, December 7 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  •   Legal  •   Privacy Statement