12/27/24
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The Livestock Markets were mixed again today, with the Fats and Feeders climbing higher again, and possibly out kicking their coverage. The Fats gained half a buck today. February’25 Live Cattle were 55 cents higher today and settled at 190.65. Today’s high was 190.87 ½ and the 1-month high is 193.22 ½. Today’s low was 189.72 ½ and the 1-month low is 185.90. Since 11/27 February’25 Live Cattle are 2.05 higher or more than 1%. The Feeders gained another 2 dollars today. January’25 Feeder Cattle were 2.07 ½ higher today and settled at 261.37 ½. Today’s high was 261.85 and that is the new 1-month high as well. Today’s low was 258.77 ½ and the 1-month low is 253.80. Since 11/27 January’25 Feeder Cattle are 2.60 higher or 1%. The Hogs were fractionally lower today. February’25 Lean Hogs were 5 cents lower today and settled at 84.15. Today’s high was 84.97 ½ and the 1-month high is 89.60. Today’s low was 83.62 ½ and the 1-month low is 82.67 ½. Since 11/27 February’25 Lean Hogs are 3.77 ½ lower or more than 4%. Beef exports last week were awful, at only 1,100mt, down 85% from the week before and down 81% from the 4-week average. This week and next are Holiday weeks, with many taking one or both weeks off, and I think that could have contributed to gains in the Cattle Markets. The Funds are still long, and without traders there pushing back, it was easy to run it higher again. However, next week could have the opposite effect if the Funds decide to liquidate on the last two trading days of the year. There might not be enough support in the market to handle a large volume selloff, and that alone could tank the Cattle markets. The Feeders broke about 20 dollars from these levels earlier this year, and it is possible for it to happen again. If you have not hedged anything yet, good for you, but I encourage you to at least think about doing it now. August’25 Feeders closed at 265.37 ½ and the September’25 Feeders closed at 264.82 ½. Those are attractive prices to lock in with futures or put a floor in the market using options. I would be happy to show you how. You can open an account now and fund it when you are ready, that way you will be able to participate when the market moves. If you are interested in that use this link Sign Up Now The January’25 Feeder are $6.90 higher over the last 5 days and set a new 1-month high today. If it breaks, it will break fast.
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The Grain Markets were mixed again as well today, with the Wheat still leading the way higher. The Beans gave back most of yesterday’s gains. January’25 Soybeans were 8 cents lower today and settled at 980. Today’s high was 989 ¼ and the 1-month high is 1003 ½. Today’s low was 979 ¼ and the 1-month and 52-week low is 945 ¼. Since 11/27 January’25 Soybeans are 8 ¾ cents lower or almost 1%. The Corn Market stayed positive again today. March’25 Corn was ¼ cent higher today and settled at 454. Today’s high was 455 and that is the new 1-month high as well. Today’s low was 452 ¼ and the 1-month low is 427 ¼. Since 11/27 March’25 Corn is 26 cents higher or more than 6%. The Wheat Market rallied again today. March’25 Wheat was 5 ½ cents higher today and settled at 546 ½. Today’s high was 547 ¾ and the 1-month high is 569 ¼. Today’s low was 537 ¼ and the 1-month and 52-week contract low is 529 ¼. Since 11/27 March’25 Wheat is 2 cents lower or about ½%. I still think the Beans will bounce around between 940-1000 for a while. When we see just how massive the South American Soybean crop will be, I think the lows will be close behind. Then you can buy it, many months out using options, and capture a big move higher if it were to occur. I can show you how I would do that, give me a call if you are interested. The Corn Market still looks strong, with solid demand, but I don’t want to buy it over 450. I don’t think the market is ready for 500 Corn, at least not yet. I would buy March’25 Corn again if it traded down to 435-440. However, if it trades through 461 ¼ it could run higher from there. 461 ¼ is the 50% retracement from the 52-week high/low. The Wheat Market looks like it was to head higher, and if it does, I like the 580 level for starters. I have been buying Calls and Call spreads this week in the March’25 Wheat. The Soybean Oil and the Canola Oil Markets could start to move higher again as well. I still recommend buy the Natural Gas Market to everyone. I continue to buy Calls and Call spreads in that market as well. If you would like to know why I as so Bullish the Nat Gas Market, just give me a call. Have a great weekend and a Blessed New Year!
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Today’s Brazil Weather Radar Map Below.
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Newest Walsh Gamma Trader Link Walsh Gamma Trader
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-Bill
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