Livestock Report

Live Cattle

The February Live Cattle contract held the 123.125 support level Tuesday morning making the low of the day at 122.75. A strong rally followed from the low with price trading past the 124.75 resistance level. It made the high at 124.875. It pulled back from there and ended the session in the middle of the range at 124.00. A rally above the high could take price to the 125.50 resistance level and then it could continue on towards the 127.15 to 128.30 resistance zone. Trading below the low could take price to trendline support at 122.45. A breakdown below here could lead to a test of support at 121.325. The negotiated cash trade was light to moderate on moderate demand with live sales 1.00 lower than last week at 118.00 in the Southern Plains. Nebraska trade was light on moderate demand with live sales from 120.00 The Western Corn Belt trade was light on light to moderate demand with live sales at 120.00. Trade was slow on light demand in all other feeding regions. The fedcattlexchange.com auction is on for Wednesday morning with 955 head for sale. Tuesday afternoon boxed beef cutout values were higher on Choice and Select on light to moderate demand and heavy offerings. Choice was up 2.45 to 208.63 and Select was up 0.60 to 188.65 on 178 loads. The choice/ select spread widened to a plus 19.98. The estimated cattle slaughter for Tuesday was reported at 120,000.

Feeder Cattle

The January Feeder Cattle contract opened (150.075) higher, dipped down to the low of the day at 149.50 then rallied the remainder of the day reaching the high at 152.05. It ended the session just below the high at 151.425. The high is just below the 152.30 resistance level. A rally above 152.30 could lead to a test of the 153.70 resistance level. Aggressive short covering could lead to the 154.25 resistance level and the 50 DMA ((154.675). A breakdown from 151.425 could take price down to the 100 DMA (150.575). Support then comes in at 149.975.

Lean Hogs

The February Lean Hogs contract tested the 69.90 resistance level Wednesday morning, reaching the session high at 69.30. It failed from here and traded down through the 67.90 support level, making the low at 66.80. It ended the day at 66.90. This is just above the 66.75 support level. A break down below 66.75 could see price test the declining 100 DMA at 65.90. A rally off the low could send price towards the 67.90 resistance level.

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, November 30 at 3:00pm. 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.