Commentary Today’s WASDE report was largely a yawner. The December report usually is as USDA will wait until the January report to make any production and yield changes from this past US crop season in my view. For beans not much changed. USDA held expected 2023-24 soybean carryover steady with last month at 245 million bushels. USDA made no change …
Hogs Break Down
February Lean Hogs gap opened lower, made an early low and recovered, closing the gap. It made the high at 68.875, which is just above the key level at 68.75 and then broke down. It traded down to the session low at 67.425 and settled near the low at 67.775. This is just below support at 67.80. Sounding like a …
Pure Hedge – Livestock and Grain
12/6/23 Well… it’s better than being wrong. The Cattle and Soybean markets were spanked down again today. February’24 Live Cattle dropped another 5.425 today and settled at 163.550. Today’s low of 162.550 in Feb’24 Live Cattle is also the 1-month and 52-week low. Since 11/6 February’24 Live Cattle is down 18.675 or over 10%. January’24 Feeder Cattle …
Grain Spreads: Meal Supports
Commentary It is my belief that the trade expects minimal changes in carryout in Friday’s USDA December WASDE supply /demand report. Changes may occur in world corn and soybean ending stocks and that’s due to expected production losses in Brazil, with output seen down 2 to 3 million metric tons this month for Brazilian corn and beans. While there is …
Hogs Consolidate While Cattle Markets Continue Their Descent
February Lean Hogs opened unchanged and then broke down to the session low at 69.50. It reversed course and raced to the high at 71.925. Trade stalled, pulling back into the middle of the range age for the rest of the session and settled at 70.80. Cash fundamentals continue to weaken and the indices are breaking down. Slaughter is up, …
Pure Hedge – Livestock and Grain
12/4/23 I have expected the $13.00 level in Soybeans for a while, that said, there could be a short-term bounce before continuing to break to $11.50. If you have been short, good for you, but I recommend buying some cheap calls, for short-term upside protection. January’24 Soybeans slid another 18 ¾ cents today and settled at 1306 ¼. Today’s low …
Grain Spreads: Short Covering Ensues
Commentary USDA inspected 45.6 million bushels of cornfor export shipment in the week ending November 30, as shown below; its largest weekly total in almost six months. The portion of the above that was inspected specifically for shipment to China during the week included 10.8 million bushels of corn. The corn market had help in my opinion by the fund’s sizable, short …
Pure Hedge – Livestock
12/1/23 The Cattle markets have continued to collapse, and I don’t believe they are done breaking yet. This past Monday I suggested selling into any strength. Tuesday the Cattle market was much higher… February’24 Live Cattle were 4.000 higher and settled at 172.825 and the January’24 Feeders were up 7.200 and settled at 227.425. It was a good trade if …
Pure Hedge – Grain
12/1/23 The Soybean did not stop dropping today. January’24 Soybeans dropped another 17 ¾ cents today and settled at 1325, just above the low of 1323 ½. March’24 Corn gained 2 cents today and settled at 484 ¾. The wheat was actually higher today, March’24 Wheat gained 4 ¾ today and settled at 602 ¾. Since 11-24 March Wheat is …
Livestock Markets Break Down
February Lean Hogs made an early attempt to rally, opening higher and up ticking to the high at 72.00. The high was just under resistance at the 50% retracement level at 72.05. This is a retracement from the 78.70 high to the 65.40 recent low on the continuous chart. Cash fundamentals remain weak and gap close sellers took control of …