Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

8/14/24

The Livestock Markets were all higher today. The Fats gained over a dollar. October’24 Live Cattle were 1.37 ½ higher today and settle at 182.12 ½. Today’s high was 182.40 and the 1-month high is 189.05. Today’s low was 180.45 and the 1-month low is 176.20. Since 7/12 October’24 Live Cattle are 1.95 lower or just over 1%. The Feeder held onto a two-dollar gain. September’24 Feeder Cattle were 2.17 ½ higher today and settled at 244.35. Today’s high was 245.32 ½ and the 1-month high is 260.55. Today’s low was 242.15 and the 1-month low is 236.57 ½. The current 52-week low is 233.05. Since 7/12 September’24 Feeder Cattle are 13.75 lower or more than 5%. The Hogs had a nice gain of more than three dollars. October’24 Lean Hogs were 3.07 ½ higher today and settled at 75.92 ½. Today’s high was 76.10 and the 1-month high is 78.70. Today’s low was 73.00 and the 1-month low is 69.20. Since 7/12 October’24 Lean Hogs are 5.77 ½ higher or more than 8%. The Cattle Markets have been up the last two trading days, with the Fats gaining over two dollars and the Feeders up over four. I look at this as another opportunity to sell at higher prices. I still feel that the September’24 Feeders will head toward the 230 level, pause, and then head lower. The 52-week low is 233.05, and my next number lower is 231.50. I will save my next number lower for later, its ugly. 

     The Grains were all higher today as well. November’24 Soybeans were 6 cents higher today and settled at 968 ½. Today’s high was 974 and the 1-month high is 1086 ¾. Today’s low was 955 ¼, and that is also the new 1-month and 52-week low as well. Since 7/12 November’24 Soybeans are 96 ¾ lower or more than 9%. The Corn was up a few cents. December’24 Corn was 3 ½ cents higher today and settled at 400 ¾. Today’s high was 401 ¾ and the 1-month high is 423 ¾. Today’s low was 395 ½ and the 1-month and 52-week low is 390 ¼. The Wheat was higher as well. September’24 Wheat was 6 cents higher today and settled at 534 ¾. Today’s high was 537 ¼ and the 1-month high is 556 ¼. Today’s low was 524 and the 1-month and 52-week low is 514 ¼. Since 7/12 September’24 Wheat is 16 cents lower or almost 3%. The Soybeans, Corn and Wheat all made new 52-week contract lows today. Each of those Markets bounced after making the new lows, with the Beans settling 13 ¼ cents off the lows, Corn 5 ¼ cents off the lows, and Wheat 10 ¾ off the day’s lows. I feel that the lows in the Soybeans are not in yet, and the Market will push below 950 and head lower. Once the lows are in, there will be a large corrective bounce in the Beans, but that is now what we saw today. I feel that the Corn and Wheat have great upside potential, especially if there is a problem in the Middle East, or elsewhere. I am still Bearish the Cattle and Soybean Markets.  

-Bill

Bill Allen

Senior Account Executive

Direct:      1 312 957 8079

ballen@walshtrading.com

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