Walsh Trading Daily Insights Commentary March Feeder Cattle opened strong with futures opening above resistance at 184.375 and then testing this key level right away, making the low at the key level. Feeders rallied the rest of the session, making the high at 186.40 and settling nearby at 186.15. This is above the 185.80 resistance level which puts resistance at …
Hog Commentary
Hog markets were lower today with another session of wide ranges. Although the high of the day was the opening price, the market bounced off of it’s lows to settle at 86.425 for the April contract. The CME lean hog index is up 7 cents to $72.71 (as of Jan. 27) extending its gains for the fourth straight day. Though …
Livestock Report
Walsh Trading Daily Insights Commentary March Feeder Cattle rallied to just past resistance at 184.375 to the session high at 184.75. It couldn’t sustain the rally and pulled back, settling at 183.925. The low came in at 183.15. The low was just above support at the rising 50-DMA now at 183.125. The cash index has risen but futures are rich …
Grain Spreads: Inversions Dominate
Commentary As of January 24th, the CFTC on their latest announcement had funds long an estimated 135k soymeal contracts. The net long was down 5K on the week, but given the Friday/Monday rally, that fund long maybe close to 150K. Crop and weather scouts down in Argentina, see dryness concerns rebuilding in late February at the latest, even earlier if …
Livestock Report
Walsh Trading Daily Insights Commentary April Lean Hogs followed through to the upside early in the trading session making the session high at 88.325 which is right at resistance at 88.325. Price couldn’t handle success and broke down, trading to the session low at 86.20 and it drifted the rest of the session to settle near the low at 86.45. …
Cattle Commentary
Live cattle futures are reversing early losses from extended profit-taking efforts and faded hopes of developing cash cattle trade. Cash cattle activity remains quiet, with packers seeking to buy animals $1 or more lower than last week, while feedlots want steady or better prices. Recent extended cash negotiations have been in packers’ favor, though they are thought to be short-bought …
Pure Hedge
PURE HEDGE CATTLE In my opinion with the cattle on feed report being a bullish report with On Feed 3% lower, Placements 8% lower, and Marketings 6% lower but slow demand with the cold storage report showing a 7.3% increase from a year ago, higher prices may be limited. Producers are carrying all the risk in the cash market right …
Livestock Report
Walsh Trading Daily Insights Commentary April Lean Hogs traded both sides of unchanged on Wednesday making the high at 85.85 and the low at 84.50 and it settled at 85.325. The low was just above the declining 21-DMA now at 84.15 and the high was once again just above the confluence of key levels and its recent consolidation highs. Settlement …
Grain Spreads: One Each for Wheat
A couple plays to consider in wheat. Trend and Index following funds are short 65K contracts. Attached is a chart for the July23/July 24 Chicago wheat futures spread. Last Spring, the spread traded to 1.56 over, July 23 over following the Russian invasion of Ukraine. Currently, the July 23/July24 spread sits at 15 to 20 cents under. Can it work …
Livestock Report
Walsh Trading Daily Insights Commentary April Lean Hogs made its high in the first ten minutes of trade, reaching 86.25 and then plummeting to the low by mid-morning at 84.00. It worked higher the rest of the session and settled at 85.375. The trade down to the low took price below the 21-DMA now at 84.325 and the bounce kept …