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Livestock Report


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The December Lean Hogs reversed course from Tuesdays strong trading session as reports the US-China Phase 1 trade deal could be delayed till December as the terms and venue remain uncertain. Hogs nearly went limit down after touching limit up on Tuesday. It traded down to a low at 64.45 and settled at 64.775. It is still stuck between resistance at 66.55 and support at 63.325. A break down below settlement could see price revisit support and then the October 8 low at 63.075. A recovery from settlement could see price retest resistance at 66.55. The Lean Hog index continued its decline and is at 60.36 as of 11/04/2019. The Pork Cutout Index rose and is at 77.23 as of 11/05/2019.

December Live Cattle dipped lower and tested support at the 8 DMA (118.468) making the low at 118.20 and recovering to settle at 119.00. This is right at the key level 119.15 which the market has been testing for the past 4 days. A push above the 119.60 high could see resistance tested at 120.75. A pullback from settlement could see support at 117.80 tested. Support then comes in at 116.55. The cash market was at a standstill. Boxed beef cutouts were higher with choice cutouts up 1.09 to 237.14 and select up 1.71 to 211.53 on moderate to good demand and offerings. The choice/ select spread narrowed to 25.61 and the load count was 132. Slaughter was 118,000.

January Feeder Cattle broke down and tested support at 143.50 and the 21 DMA at 143.59, making the low at 143.60. It bounced and settled at 144.425. This is right at the key level 144.25. A failure from 144.25 could see price test support at 143.50 and then 142.40. If settlement holds a retest of resistance at 145.05 and 146.20 is possible. The Feeder Cattle Index dipped lower and is at 146.24 as of 11/04/2019.

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 7that 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.



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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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