Livestock Report

The December Lean Hogs contract opened higher traded to the high of the day at 70.925 and failed. It broke down and trade lower the remainder of the session and made its low at 68.375. It formed a bearish outside day candle as its range engulfed Fridays range. It is also consolidating as the past 4 sessions has formed a ledge. It settled at 69.125. Price is trapped between resistance at 71.325 and support at 67.80. A bounce off of settlement should see price test the 69.80 resistance level again and then the high. A breakout above the high could see price test resistance at 71.325 -71.85. A failure from settlement could see price test support at 67.80 and then 66.55. The Lean Hog index rose and is at 61.18 as of 10/10/2019. The Pork Cutout Index continued its climb and is at 77.12 as of 10/11/2019.

December Live Cattle broke out above resistance at 112.35 and traded to a new high for the up move at 113.725. It settled at 113.45. This is just below resistance at 113.90 and the nearby declining 200 DMA at 113.89. This could be strong resistance. A failure from settlement could see price revisit support at 112.35. A breakout above resistance could see price test resistance at 114.65 and then 116.55. The cash market was at a standstill. Boxed beef cutouts were up with choice cutouts up 1.56 to 217.22 and select up 0.65 to 189.33 on moderate to good demand and offerings. The choice/ select spread widened to 27.89 and the load count was 82. Slaughter was 117,000.

November Feeder Cattle rallied and traded above the October 9th high (145.575) to a new high for the up move at 146.825. This is just below resistance at 147.30. It pulled back at the end of the session and settled at 146.075. Settlement is just below the key level 146.20 and should key trade for Tuesday. A rally above 146.20 could see price challenge resistance at 147.30. Resistance then comes in at 148.40. A failure from settlement could see price test support at 145.05 and then 144.25. The Feeder Cattle Index rose and is at 144.26 as of October 11th.

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, October 18that 2:00 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.

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**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.