rounded corner
rounded corner
top border

Livestock Report


Bookmark and Share

The December Lean Hogs contract followed through to the downside dropping to 67.85 before a late session recovery took price higher and it settled at 69.10. The ranges continue to be wide with the early attempt to rally stopping at 71.000. The low was above support at 67.80 and the Monday low at 67.70. Buyers coming back into the market above those levels hopefully bode well for trading on Thursday. It is the wild west out there and export sales numbers come out before Thursdays open and could key trade for the session. Hogs settled below the 69.80 key level so watch how price reacts to this area. A rally above 69.80 could see price revisit the 71.325 71.80 resistance zone. Resistance then comes in at 72.80. A failure from settlement could see price test the Monday low again. Support then comes in at the 21 DMA now at 66.98. I think traders are hoping for a nice purchase from the Chinese and a low level will probably disappoint the market. The Lean Hog index continues its rebound and is at 57.05 as of 9/30/2019. The Pork Cutout Index continued its climb and is at 72.87 as of 10/1/2019.

December Live Cattle traded lower after the open, making the session low at 109.20 before reversing and grinding higher for the rest of the day. It made new highs for the up move at the end of the session reaching 110.825. This is right at resistance at 110.80. It settled at 110.625. If price can overtake resistance at 110.80 a move towards resistance at 112.35 is possible. A failure from settlement could see price revisit support at 108.65. A break down below 108.65 could lead to a test of support at 107.30. The cash market was at a standstill. Boxed beef cutouts were lower with choice cutouts down 0.50 to 212.97 and select down 0.15 to 185.90 on light to moderate demand and offerings. The choice/ select spread narrowed to 27.07 and the load count was 171. Slaughter was 116,000.

November Feeder Cattle was able to hold the 13 DMA (140.30) making the low at 139.575 and then reversing and trading higher for the remainder of the session. It made the high at the end of the day reaching 142.20. It settled at 141.675. It formed an outside day candlestick and a new high could see price push to the 200 DMA at 142.50 and then 143.50. Resistance then comes in at 144.25. A failure from settlement could see price revisit the low. The Feeder Cattle Index was higher and is at 143.09 as of October 1st.

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, October 3rdat 3:00 pm. 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 ©2005-2019 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy