Commentary The buy the dips mentality remains in my view following the January 12th supply and demand report. The big surprise for corn came out friendly that aided the corn and beans higher. They lowered the corn acres 1.5 million despite raising the yield .8 bushels per acre. Stocks to usage is at 8.9 percent, second lowest since the drought …
Hog Commentary
Hog markets traded higher today with exception to the February contract, which settled 20 cents lower at 78.45 on the day. The April contract traded as high as 89.075 but back off, settling at 88.125, 85 cents higher. Some traders are seeing cash hogs starting to form a bottom which may be the reason why there is some support in …
Livestock Report
Walsh Trading Daily Insights Commentary February Lean Hogs had an uneventful Friday, consolidating within the Thursday range and forming an inside candlestick. The Friday range was 79.40 high to 77.675 low, with settlement at 78.65. The high approached resistance at 79.80 and the low pushed through support at 77.80. Settlement was below the key level at 78.80 so, in my …
Grain Spreads: WASDE Results
Commentary Yesterday’s WASDE release carried some surprises in my view across the grain board. The biggest shocker in my opinion was the USDA reducing harvested corn acres with a reduction of a whopping 1.6 million acres. This is the largest Nov-Jan acreage reduction going back to 1974 when the USDA started publishing data on the topic. It is my belief …
Pure Hedge– Cattle
In my opinion, I still have a bullish bias for the cattle market in general. Cash markets have put pressure on the futures in recent trading session with reported trades averaging 157.86. I believe near term contracts should look to be bought if there is upside price risk for beef producers. Deferred feeder cattle contracts (late summer/fall) I would consider …
Livestock Report
Walsh Trading Daily Insights Commentary February Lean Hogs continued its stumble, trading down to another new low for the down move at 78.825, making the high at 80.15 and settling at 79.30. The rally to the high couldn’t challenge resistance at 80.45, falling short and then breaking down to test support at 78.80. Cash markets continue to weaken and futures …
Livestock Report
Walsh Trading Daily Insights Commentary February Lean Hogs couldn’t get out of bed on Tuesday, opening lower and making the session high at 80.60 by 9am (CST), unable to overtake Monday’s settlement. It broke down below support at 8045 and 79.80 to a new low for the current down move at 79.35. It bounced and settled at 79.80. Settlement was …
Grain Spreads: Bean Demand
Commentary It is my opinion that Argentina is the Soybean bulls ace in the hole. They continue to be dry with some estimates down to 42 million metric tons of production from pre growing season estimated above 50 million metric tons. However, Brazil may have the largest bean crop they have ever planted. They along with Paraguay and Uruguay could …
Cattle Commentary
Cattle markets showed a lot of strength this morning with the February contract trading as high as 158.825 but almost immediately sold off after it failed to break through the 159-resistance level. Mid-morning cash trades reported were $160, according to the USDA’s Morning national Slaughter Cattle Review, so that should lend support to the market for tomorrow. In my opinion, …
Grain Spreads: WASDE Ending Stocks
Commentary Thursday Jan. 12, 2023, at 11am Central, the supply and demand report will be released. Generally, this is the most important report of the year in my opinion which includes the final acres for the year, final yield results, revised carryover and the supply and demand for the coming year. Surprises vs expectations occur in this report in my …