rounded corner
rounded corner
top border

Livestock Report


Bookmark and Share

In another volatile trading session June Lean Hogs opened lower and rallied to the high of the day at 92.80. It wasnt able to take out yesterdays high at 92.825 and sellers took over and drove price down hard past support at 90.45 on its way to the low at 89.65. Bulls came back in the market and price rebounded, stopping just short of the high of the day and settled right at the 92.375 resistance level. It is the highest close since May 3rd as it closed the gap from the low (91.975) on that day to the May 7th high. Continued strength could see the 93.50 resistance level tested. Resistance then comes in at 95.30. An inability to rally past 92.375 could see price revisit support at 9045. The Lean Hog index continues to firm reaching 84.21 as of May 15th and the pork cutout index remains strong and it is now at 87.15 as of May 16th.

June Live Cattle rallied right from the start of the trading session. It opened above yesterdays settlement price and raced to the session high at 112.50. It couldnt handle the rally and grinded lower making the session low at 110.625. It recovered and settled at 111.275. The high and the low both poked through key levels at 112.35 for resistance and 110.80 for support and rejected both levels. A weak open on Monday could see price test support at 108.65. Support then comes in at 107.30. Another attempt to recover could see price retest resistance at 112.35. The cash market traded lightly today at 115.00 and 117.00 on a live basis and 185.00 186.00 for dressed. Boxed beef cutouts rebounded today with choice cutouts up 0.75 to 220.31 and select up 0.40 to 208.28 on moderate to fairly good demand and moderate offerings. The choice/ select spread widened to 12.03 and the load count was 109. Slaughter slowed to 117,000 on Friday and Saturday slaughter is estimated at 59,000 bringing estimated slaughter to 660,000 for the week. This is lower than last weeks 671,000 and last years 668,000.

August Feeder Cattle has rallied aggressively since making the low for the down move on Thursday. The low is at 140.50 just below the 140.775 support level. Todays rally took price up to resistance at 146.20 with the high for the session just below it at 146.05.It settled at 145.50. Continued strength could see price test the resistance area at the 100 DMA (146.95) and 147.30. Resistance then comes in at 148.40 and the 200 DMA at 148.69. A pullback from settlement has the potential of revisiting support levels 144.20 and 143.50. The Feeder Cattle Index continues to move lower as it came in at 132.76 as of May 16th.

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, May 23rdat 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