Pure Hedge

Peter McGinnGeneral Commentary

In my opinion, after the December cattle on feed report came out as bullish, there was a breakout of the sideways consolidation that was happening and now looks to be in an uptrend going into the new year. Cattle herds are declining going forward and production expectations are continuing to drop for the 1st and 2nd quarter. I believe near …

Grain Spreads: Corn Demand

Sean LuskGeneral Commentary

Commentary Demand for Corn is picking up slowly. Corn shipments to China increased over the past four weeks, highlighted by a marketing year high of 33.7 million bushels inspected for export this AM, with almost 11 million bushels going to China. Shipments from Ukraine are slowing, as Russia continues to slow walk inspections limiting grain exports. South American supplies are …

Livestock Report

Ben DiCostanzoGeneral Commentary

Walsh Trading Daily Insights Commentary March Feeder Cattle rallied past resistance at 185.80 to the session high at 186.15. It pulled back and settled at 185.725. The low came in at 184.725. Strong cattle futures helped support Feeders as the strong corn futures couldn’t derail the enthusiasm in the Feeders. The settlement below resistance keeps bulls cautious as the Cattle …

Livestock Report

Ben DiCostanzoGeneral Commentary

Walsh Trading Daily Insights Commentary March Feeder Cattle has taken over as the lead contract as its volume has exceeded the January contract. On the continuous chart the March contract moved past resistance at 184.375, making the high at 185.325 and settling at 185.025. The low came in at 182.875. If settlement fails, we could test support at the 184.375 …

Hog Commentary

Peter McGinnGeneral Commentary

February lean hogs sold off more than a dollar today, settling at 84.25. The national direct cash hog price dropped 79 cents on Monday, with the Iowa/Minnesota market down $1.98. The CME lean hog index is down 71 cents to $80.84 (as of Dec. 16), the lowest level since Jan. 27, signaling the cash market has not yet put in …

Livestock Report

Ben DiCostanzoGeneral Commentary

Walsh Trading Daily Insights Commentary January Feeder Cattle opened lower and traded just past resistance at 184.375 to the high at 184.45. Resistance once again held, and the market broke down and traded to the session low at 181.60. It hung around the low the rest of the session and settled at 182.10. The fall from grace took price below …

Livestock Report

Ben DiCostanzoGeneral Commentary

Walsh Trading Daily Insights Commentary February Lean Hogs opened at the low of the session at 81.65 and a massive wave of short covering took price up nearly going limit up in the process to the high at 86.275. The surge took place in my opinion, as price opening at Thursday’s settlement  wasn’t able to take out Thursday’s low price …

Grain Spreads: Corn Technical’s

Sean LuskGeneral Commentary

Commentary March futures’ modest gain this week could signal that a short-term bottom was forged earlier this month. Time will tell.  A stronger-than-expected weekly export sales number seemed to confirm buying interest on price dips. But the bigger export picture remains bearish, with U.S. commitments so far in 2022-23 down 48% from 2021-22. Moreover, the macroeconomic outlook grew cloudier in …

Cattle Commentary

Peter McGinnGeneral Commentary

February Live cattle rallied today close to a dollar, settling today at 155.775. Volume for today’s trade was moderate as the market did close the small gap that was formed back on Wednesday and Thursday from 155.575 (wed low) and 155.525 (Thur high). With packers bidding more aggressively than anticipated, some feedlots held out for even stronger prices. Choice beef …

Pure Hedge

Peter McGinnGeneral Commentary

In my opinion, cash is moving the market higher and we could see a retest of the recent highs in the cattle markets. Feeder cattle cash seems to be gaining steam and futures are looking to follow, based off of my analysis of the charts. In order to take full advantage of price discovery, we must keep an astute eye …