Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

1/17/24 The Cattle Markets rallied late today to close higher, while the Soybeans continued to break. April’24 Live Cattle gained 0.450 today and settled at 175.625, just below today’s high of 175.950, which is also the 1-month high. The 1-month low is 171.075 and the 52-week low is 165.400. Since 12/15 April’24 Live Cattle is up 2.775 or over 1 …

Grain Spreads: Weak Demand Signals

Sean LuskGeneral Commentary

Commentary December NOPA soybean crush came in at 195.3 million bushels yesterday, above the average 193.1 million bushels (mbu) estimate and up from 189.0 mbu in November and 177.5 mbu in Dec 2022, as well as the largest single month on record (ahead of 189.8 mbu in Oct 2023). If only the bean market had an increase of demand along …

Grain Spreads: Death Cross in Corn

Sean LuskGeneral Commentary

Commentary No favors from the USDA last Friday for the corn market as a surprise 2.4 bushel increase in yield didn’t come close to offsetting a decrease in harvested acres. Despite ethanol numbers and feed use being raised ending stocks still rose in corn 31 million bushels. If that wasn’t enough, per Hightower, the USDA cited China’s government corn stocks …

Hogs and Cattle Can’t Hold Rallies

Ben DiCostanzoGeneral Commentary

February Lean Hogs opened lower and traded down to the session low at 71.275. This was just below support at 71.325. Support held and price recovered, rallying to the high at 72.60. The high was right at strong resistance denoted by the 100-DMA now at 72.60. It was also below resistance at 72.80. This proved to be too much for …

Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

1/12/24 The Live Cattle Market was lower again today. February’24 Live Cattle was 0.425 lower today and settled at 171.375, just above today’s low of 171.050. The 1-month low is 166.925 and the 52-week low is 162.400. Since 12/12 February’24 Live Cattle is up 2.850 or over 1 ½%. The Feeders closed a little higher today. March’24 Feeder Cattle gained …

Grain Spreads: Bean Hedges

Sean LuskGeneral Commentary

Commentary Bigger US soybean yields that overcame smaller US acreage were the main factor in driving the soy complex lower today in my opinion. USDA raised its soybean production estimate 36 million bushels to 4.165 billion bu., which was 38 million bushels more than expected. USDA increased yield 0.7 bu. to 50.6 bu. per acre. Harvested area was cut 435,000 …

Hogs Rally

Ben DiCostanzoGeneral Commentary

February Lean Hogs rallied on Thursday, trading up to Tuesday’s high at 73.05 and dipping to settle at 72.60. The low came early in the session at 71.425. This price action has formed a Tweezer Top formation with the matching highs. It is a potentially bearish formation going into Friday. Weather issues has caused a slowdown in slaughter and we …

Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

1/10/24 The Cattle and Grain markets were mixed again today, and the Beans were the biggest mover down. Live Cattle closed fractionally lower today, with February’24 Live Cattle down 0.025 today and settled at 170.750, just above today’s low of 170.500. The 1-month low is 164.875 and the 52-week low is 162.400. Since 12/8 February’24 Live Cattle are 4.875 higher …

Hogs rally as Cattle Markets fail to hold onto their rallies

Ben DiCostanzoGeneral Commentary

February Lean Hogs opened lower and rallied to the high of the day at 70.775.  It reversed and broke down to the low of the day at 68.95. It once again turned around and rallied, approaching the high and settling near the high at 70.60. Hope is running high in the futures market that Hogs have made a low, giving …

Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

1/8/24 Once again, the Live Cattle and the Grain Markets broke. February’24 Live Cattle declined 0.625 today and settled at 169.950, just above today’s low of 169.675. Today’s high of 173.250 is also the 1-month high. The 1-month low is 164.875 and the 52-week low is 162.400. Since 12/8 February’24 Live Cattle is 4.275 higher or more than 2 ½%. …