Walsh Trading Daily Insights Commentary February Lean Hogs gap opened lower, breaching the 50-DMA (83.85) at 83.725 then whirled around and surged to an early high at 85.90 by mid-morning. The open turned out to be the session low and the rally stalled, testing the middle of the range and grinding higher to the session high at 85.95. It pulled …
Grain Spreads: July23/Nov 23 Beans
Commentary It is my belief that soybean futures ended at the highest levels in over two months behind a rally in soymeal, further indications of strong demand and concerns adverse South American weather may crimp yield prospects. Sharp gains in crude oil futures and weakness in the U.S. dollar also supported prices. Early today, USDA reported a daily sale of …
Cattle Commentary
Cattle markets traded higher today on news that there maybe higher cash prices being traded in the mid to high $150s. With the cash cattle market likely to remain strong, especially if Plains states are hit with wintry weather in the near future, nearby futures look cheap from a historical standpoint. December futures ended the day about $3.00 below last …
Livestock Report
Walsh Trading Daily Insights Commentary February Lean Hogs continued lower on Tuesday, trading down to the 50-DMA now at 83.90, making the low just above it at 84.025. The high came in at 85.475, just above resistance at 85.325. Settlement was near the low at 84.15. Cash trade continues to be worrisome as both cutouts and cash prices continue to …
Grain Spreads: Funds Pile on Wheat
Commentary Managed money continues to press the wheat market lower as every bullish story has been brushed aside. Funds sold another 10K of US Chicago wheat yesterday, which brings the net short to approximately 85K in my view, which is nearly the size of the long in soybeans. This is more than double the short the sector carried 30 days …
Livestock Report
Walsh Trading Daily Insights Commentary February Lean Hogs collapsed as Chinese protests over the weekend created a firestorm of downside action in the Hog market. The protests and most likely severe crackdowns left the market worried about Chinese demand for pork. The cash market’s continued weakness also pushed February Hogs lower as the December contract is no longer the lead …
Cattle Commentary
Cattle futures fell for a third straight session today following the November 20th Cattle on Feed report. It showed a small recovery by the time it settled at 154.675, down only 45 cents for the day. Based on technical analysis the low of the day hit 154.125, right at the 62% retracement level before closing above the 40 DMA indicating …
Hog Commentary
February lean hogs traded lower today after briefly being positive early in the morning, the contract settled at 88.80, lower by $1.275. After yesterday’s cold storage report I thought there would have been more support in the market than what was shown, but with more volume traded today than yesterday, the market looks poised to trade lower on Monday (Friday …
Pure Hedge
In my opinion, the outlook for the cattle market has put in a near term high. Today’s move being a dollar lower makes me believe that Monday’s trade was just a spike higher based off the report and traders used Tuesday to reposition for a reversal to the downside. Cash market trades have seemed to stabilize a little giving support …
Livestock Report
Walsh Trading Daily Insights Commentary January Feeder Cattle failed to overcome resistance at 182.70, making the high at 182.50 during the opening and then breaking down to close the gap created from the higher Monday open from Friday. The low of the session was right at Friday’s high (181.20) closing the gap. Bulls didn’t come back into the market and …