The October Lean Hogs nearly went down limit on Tuesday. I mean… it just consolidated within Monday’s trading range. Both statements are real… Yesterday’s huge 8-handle plus trading range made today’s move look like nothing major happened. Wow… The conflict between the US and China over trade has the market on a roller coaster ride that feels like it is never ending. The riders want to get off but can’t. China needs pork that is a given… we have plenty of pork to sell… China must come to the table and be a stand-up trading partner. They can’t go on treating their trading partners as insignificant partners who they can treat any way they desire. They will benefit from everything we have to offer. Get off your high horse and see things as they are not as you want them to be. You’ve been given many gifts over the years as you have grown into your position in trade. To expect that to continue as you become a dominant world player doesn’t make sense, in my humble opinion. The turmoil you are causing in the market place because of your refusal to play on a level playing field is crazy. Treat your partners right and you will benefit. It makes me wonder who’s responsible for all the selling in the market. China needs pork…. that is a given…Whether they buy it from us or somewhere else the source is finite and their needs are daunting. Somewhere down the road they will have to buy US pork…. That is my given… The Lean Hog Index inched higher and is at 84.68 as of August 2nd. The pork cutout index surged and is at 87.37 as of August 5th.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, August 8 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.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Senior Market Strategist
Walsh Trading, Inc.
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.