Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

8/29/24

 The Cattle Market looked heavy again today. The Fats and the Feeders were unable to even attempt a rally today, and they both settled just off their lows. October’24 Live Cattle were 72 ½ cents lower today and settled at 177.90. Today’s low was 177.50. The October’24 Feeder Cattle were 1.90 lower today and settled at 236.67 ½. Today’s low was 236.20. The September’24 Feeders were 1.80 lower today and settled at 239.50. Today’s low was 239.15. The October’24 Hogs were 50 cents higher today and settled at 82.17 ½. Today’s low was 81.10. I still believe the Cattle Markets are in trouble and heading lower. Today, when the Livestock and Grain Markets closed, the Dow Jones index was about 475 points higher, and the US Dollar Index was 0.280 higher, but well below the day’s high when the Index was 0.520 higher. With the Dollar Index declining during the day and the Dow up almost 500 points, I would expect the Cattle Market to rally under normal circumstances. However, the Cattle Markets are in the middle of a slide lower, and I feel that will continue for the foreseeable future. The Grain were all higher today, and I expect that from the Corn and Wheat Markets, but not the Soybeans. November’24 Soybeans were 14 ¾ higher today and settled at 991 ¾. Today’s high was 992 ¾. December’24 Corn was 5 ¼ cents higher today and settled at 396. Today’s high was 396 ¼. December’24 Wheat was 7 ¼ cents higher today and settled at 548 ¾. Today’s high was 549 ½. I still think the Corn and Wheat Markets can rally from here, but not the Beans. Tomorrow is the last trading day of the month, and in my opinion, the record shorts in the Soybean Market let it rally today, so they can take advantage of higher prices and push it straight down tomorrow, and make the books look even better at the end of the month. The dry areas in Brazil, are surrounded by a Rain Forest… If you have any questions for me, send me an email at BALLEN@WALSHTRADING.COM 

-Bill

Bill Allen

Senior Account Executive

Direct:      1 312 957 8079

ballen@walshtrading.com

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