In my opinion, it seems funds like to use bearish cattle on feed reports to buy the dips and then take futures higher. It’s happened again as December live cattle has made a new high and November feeders has traded back to the upper end of its trading range. I believe this is the fifth report in a row that this has happened. This rally is going against a flat cash market. Tuesday saw small trading at even money with last week in the cash market. Packers were unwilling to respond to slightly higher minimum bids on the fedcattleexchange.com auction ($111.00 and $112.00) on Wednesday. They are not showing any urgency in their pursuit of cattle. Maybe that will change if futures continue to move higher the rest of the week. This could be a good time to look at hedging opportunities in the futures market. Give me a call and lets discuss your situation.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, September 27th 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.* *
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109,
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.