Walsh Trading Daily Insights Commentary February Lean Hogs made a new low for the down move, trading down just past support at 79.80 to the low at 79.70. Price rebounded hard and it raced to the session high at 81.625. The rally stopped just under resistance at 81.70 with the high and low established by 11am (CST) and it consolidated …
Cattle Commentary
Cattle contracts were higher today with February leading the way being up 97.5 cents, settling at 157.750. In my opinion, it looks like 157 is good support in the market as Friday’s afternoon reported cash trades come in at 157.41 on average and $157.18 on average this Monday morning. Also on Friday, wholesale beef prices firmed with Choice up $1.36 …
Livestock Report
Walsh Trading Daily Insights Commentary March Feeder Cattle continued lower on Friday, breaking down to the session low at 185.05 and nearly erasing the Wednesday rally in the process. The Wednesday low was at 184.875. The Friday low was also just above support at the rising 21-DMA now at 184.90. The last two sessions were inside the Wednesday candle as …
Pure Hedge
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 …
Grain Spreads: Balance Sheets
Commentary March corn futures ended 2022 at the second highest year-end quote on record, (6.78 basis March 23 futures) reflecting tight supplies in my opinion. But demand concerns are growing as sales for future shipment lag the USDA estimate by 280 million bushels or 14 percent. Last week brought fresh news of feeble ethanol demand from the fuel sector, while …
Livestock Report
Walsh Trading Daily Insights Commentary March Feeder Cattle reversed Tuesday’s sad start to the year, surging to a new high for the up move at 188.75 in the process. The low was made during the opening 5 minutes of trade at 184.875 and the surge was over by 10AM (CST). It consolidated near the high and settled at 188.225. Corn …
Livestock Report
Walsh Trading Daily Insights Commentary March Feeder Cattle started 2023 on a sour note, making its high in the opening five minutes at 186.275 and sprinting to its low at 184.30 by 9:15 AM (CST). It drifted near the lows the rest of the session and settled at 184.775. With corn working its way lower all session, hope was in …
Grain Spreads: Corn Demand and Fund Longs
Commentary Export sales for Corn came in last week as expected and that gave corn nothing to rally upon today. In fact, Corn dropped eight cents amid a commodity sell-off to begin 2023. The 780K tons sold last week was just over 50 percent of the volume done the same week ago. This brings commitments to 21.4 million metric tons …
Hog Commentary
Lean hogs sold off sharply today with follow through selling after a corrective pullback the final three days last week. February lean hog futures finished last Friday $7.51 above the CME lean hog index, which is down 55 cents to $80.19 (as of Dec. 29). Traders aren’t yet convinced the cash index has put in a seasonal low, which could …