Livestock Report

Live Cattle

On Wednesday June 13, 2018 the August Live Cattle contract consolidated within the Tuesday range (104.80 103.25). The Wednesday range was 104.725 103.575. Trading below the Wednesday low could lead to a retest of support at 103.00 and then 101.625. A rally above the Wednesday high could retest resistance at 104.85 and then 106.025. On Wednesday negotiated cash trade was very light on light demand with a few early dressed sales from 180.00-181.00. Trade was inactive on very light demand in all other major feeding regions. Wednesday afternoon boxed beef cutout values were lower on light to moderate demand and moderate offerings. Choice was down 1.02 at 223.90 with Select down 1.09 to close at 202.30 on 144 loads. The hide and offal value from a typical slaughter steer for today was estimated at 9.41 per cwt live, unchanged when compared to Tuesday's value. Estimated cattle slaughter for today is 114,000, last week 119,000 and a year ago 119,000.

Feeder Cattle

The August Feeder Cattle contract also consolidated within its Tuesday range (146.50 144.50). The Wednesday range was 146.40 145.10. Trading below the Wednesday low could see price test support at 144.20 and then 143.50. If price can trade above the Wednesday high, it could test resistance at 147.35 and then the Monday high (148.425).

Lean Hogs

The July Lean Hogs contract opened at the Tuesday high (81.75) and never looked back. It blew past resistance at 82.65 and traded to the new high for the up move at 83.225. It pulled back from the high and tested the 82.65 level, trading to 82.625. It settled above resistance at 82.775. A rally above the high could lead to a test of resistance at 83.975 and then 84.825. Resistance then comes in at 85.375.A failure from the high could see price consolidate within the Wednesday range.

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 14th at 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.