Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

10/2/25

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     The Livestock Markets were all lower today, with the Fats, Feeders, and Hogs all continuing to surrender gains. The December’25 Fats traded through the 50-Day moving average again today. December’25 Live Cattle were 1.02 ½ lower today and settled at 233.47 ½. Today’s high was 234.45 and the 1-month high is 241.45. Today’s low was 233.45 and the 1-month low is 230.07 ½. Since 9/2 December’25 Live Cattle are 7.72 ½ lower or more than 3%. The November’25 Feeders dropped more than 5 bucks today. The November’25 Feeder Cattle were 5.20 lower today and settled at 352.40. Today’s high was 356.20 and the 1-month high is 363.77 ½. Today’s low was 351.05 and the 1-month low is 342.12 ½. Since 9/2 November’25 Feeder Cattle are 10.72 ½ lower or almost 3%. The Hogs sank a little lower into the mud today. December’25 Hogs were 22 ½ cents lower today and settled at 86.67 ½. Today’s high was 87.05 and the 1-month and contract high are 91.52 ½. Today’s low was 85.57 ½ and that is the new 1-month low as well. Since 9/2 December’25 Lean Hogs are 1.40 lower or more than 1 ½%. The Livestock Markets continue to fall as support levels are breached. The December’25 Fats gave another dollar back today and traded through the 50-Day moving average of 233.39 ½ that was acting as a support level. The market did close above that level, but it did not look good, settling just 8 cents above the 50-Day. I am still looking for a 10% break off the Contract Highs of 243.57 ½, and today the December’25 Fats settled 14.26 above that level of 219.21 ½. The 100-Day moving average sits just above at 222.67 ½, and 1 ½ cents below the 10% break level sits the 61.8% retracement from the 52-week low at 219.20. The December’25 Live Cattle are now 10.10 below the Contract High. The November’25 Feeders were knocked down again today and traded to within 2.53 ½ of the 50-Day moving average of 348.51 ½, on the low trade of the day, and settled just 3.88 ½ above it. I still like the 330.88 ½ level in the November’25 Feeders, and that would be a 10% break from the Contract High of 367.65. The November’25 Feeders are now 15.25 below the Contract High at today’s close. If the November’25 Feeders trade through the 10% break level, just below sit the 100-Day moving average of 326.18 ½ and the 61.8% retracement from the 52-week low at 325.27 ½. The Hogs do not look great and continue to break since the day after the Hogs and Pigs Report, making a new 1-month low today. The December’25 Hogs traded through the 50-Day moving average of 85.84 on the lows today but did manage to close above it. I feel the next target level lower is 84.23 ½, which is the 100-Day moving average. The Livestock Markets look fragile and if “thing’s” change when the Government reopens there could be more downside to come. As always, if you Buy them – Hedge them. Yesterday’s November’25 Feeder Cattle trades are below. If you have a price level and or a timeframe you would like to protect, give me a call and I will show you a few Options. 

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     The Grain Markets were all higher today as rumors of China buying Soybeans surfaced, while the US Government is closed, and purchases would not be reported. The November’25 Beans traded through the 50-Day moving average today. November’25 Soybeans were 10 ¾ cents higher today and settled at 1023 ¾. Today’s high was 1025 ½ and the 1-month high is 1052 ¾. Today’s low was 1008 ¼ and the 1-month low is 993 ¾. Since 9/2 November’25 Soybeans are 17 ¼ cents lower or more than 1 ½%. The Corn Market looked good today and settled near the high. December’25 Corn was 5 ¼ cents higher today and settled at 421 ¾. Today’s high was 422 ½ and the 1-month high is 431 ¼. Today’s low was 414 ¾ and the 1-month low is 410 ½. Since 9/2 December’25 Corn is 1 ¼ cents lower or fractionally lower. The Wheat Market rebounded as well and closed just below the high. December’25 Wheat was 5 ½ cents higher today and settled at 508. Today’s high was 516 and the 1-month high is 535 ¾. Today’s low was 508 ¼ and the 1-month and contract low are 502. Since 9/2 December’25 Wheat is 13 ½ cents lower or just over 2 ½%. The Grains have all rebounded since President Trump spoke of China possibly agreeing to buying Soybeans and other grains when they meet in South Korea in a month. Today’s rumors of China buying Beans while the Government is closed, so the purchases go unreported, are still just rumors, but it was enough to support all the Grains. The Soybean Oil looks very attractive again and I see room to run higher for a while. The November’25 Soybeans traded through the 50-Day moving average today but settled 1 cent below it. 1030 in November’25 Soybeans looks to be the next level to trade through, with the 200-Day moving average at 1028, the 50% retracement from the 52-week high/low sitting at 1028 ¾, and the 100-Day moving average at 1029 ¾. The December’25 Corn traded higher again today, as the 50-Day moving average at 414 ¾ held as the low of the day. December’25 Corn settled just ¾ of a cent below the high of 422 ½, and the next test will be to close above the 100-Day moving average at 424 ¼, and with yield estimates dropping, strong demand, and possible trade deals near, the upside looks great. The December’25 Wheat continues to do whatever it wants and today was no different. After setting another Contract Low yesterday at 502, it rallied again today and picked up another 5 ½ cents. Who knows what the Wheat will do next, but I like it heading higher in the long run. If you would like to see anything or have any questions for me, give me a call. Important Dates and Yesterday’s Feeder Trades below. Have a great night. 

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NOVEMBER’25 FEEDER CATTLE TRADES STRUCTURED AND SENT OUT YESTERDAY 10/1/25 BELOW

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IMPORTANT UPCOMING DATES BELOW

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The need for a successful business to have a trading account is immeasurable. Look at the market movement in all markets over the last three weeks. Opening an account sometime in the future will not help you if you need access now. To be successful, and able to manage risk, you need to be proactive now and secure your access to markets in real time. You can be both Prepared and Patient at the same time. WATCH FOR TRADE DEAL NEWS

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If you don’t like the customer service or personal attention you are receiving from your broker, you have options, and you don’t have to stay there. I can have your new account open in 1-2 days. Call me anytime 312-957-8079BALLEN@WALSHTRADING.COM Sign Up Now

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50-Year Cattle Chart Below. Whenever it Breaks it Will Be a Spectacular Collapse.

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December’25 Natural Gas 5-Year Chart Below.  

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December’25 Soybean Oil 5-Year Chart Below. 

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Thank you to all of my old and new Customers. I appreciate your business. To those of you that are close to opening an account, please call me if you have any questions, and I look forward to working with you soon. To anyone thinking about opening a Hedge or Trading account, give me a call and we can talk about it. 

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GOD BLESS AMERICA

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Give me a call if you have any questions.

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Bill Allen

Vice President

Pure Hedge Division 

Direct: 312-957-8079

ballen@walshtrading.com

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