Livestock Report

June Lean Hogs consolidated within the Monday trading range as profit taking took over and Hogs rested. Resistance remains at 88.175 and then 90.425. Support is at 85.375 and then 83.975. June is now the lead contract in Live Cattle. It rallied early and made a new life of contract high at 124.225. Looking at the continuous chart, June stopped just short of resistance at 124.30. It fell back and settled just below the 122.825 support level at 122.725. A failure from here could see price test the 121.80 support level. Support then comes in at 119.15. The negotiated cash market was inactive today and boxed beef cutout values have recovered after declining late last week. Choice cutout values were up 1.00 to 229.33 and select increased 1.25 to 219.46 on good to moderate demand and offerings. There were 121 loads and the choice/ select spread narrowed to 9.87. Slaughter for Tuesday was 120,000. Last but not least May Feeder Cattle burst higher and traded to a new high for the move at 151.40. This is just below resistance at 151.55. It settled at 150.525. Support is nearby at 149.925 and then 148.40. Resistance is at 151.55 and then 152.30. The market is moving higher on worries of calf losses due to the crazy weather in the Midwest. There is possibly a tremendous amount of cattle losses due to the snow and rain that is causing massive flooding in large parts of the Midwest. It is unknown the extent of the losses and traders are pricing in the unknown.

For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 21st 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.

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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.