Strong cash cattle sales at 119.00 on a live basis and up to 187.00 for dressed on Friday couldn’t ignite futures today as cattle futures continued its lackluster trading. February Live Cattle pulled back to support at 120.75, making the low just above it at 120.775. A break down below support could see price move towards support at 119.15. A …
Headlines and Volatility
MACRO BACKDROP: Good Monday, readers. I’ll be very brief with my take on the equities today. I believe I mentioned last week that volatility for many stocks was going to be very apparent as we head into the end of the year for a few reasons. As equities digested the, seemingly, positive implications from the G20 summit, it appears …
Grain Spreads: Wheat Demand
Finally! Someone bought some US Wheat. While we have seen Egypt tip their toe in the water and make two small purchases over the last 45 days, it was a purchase by unknown destinations that buoyed the market overnight into this morning. Exporters this AM also sold 224,000 MTs of HRW to an unknown destination. Concern over availability of high quality …
5YR NOTE FUTURES AND OPTIONS STRATEGY
Treasury movements, upcoming Fed events, and economic reports indicate in my opinion that the 5yr yield will pull back from the current 2.74% yield as of this writing to 2.57% yield. The MARCH 2019 5yr note trading 113.14 as of this writing can potentially move higher toward the 114.25 area and possibly 115.12 area in my opinion. The nonfarm payroll …
Livestock Report
In a light trading session February Live Cattle continued its break out to the upside, trading to a new high at 122.55 just below resistance at 122.825. Continued upward pressure could see price test resistance at 124.30. A pullback from the high could see price fall back into the 121.625 – 118.575 trading range. January Feeder Cattle continued its recovery …
Grain Spreads: Corn Thoughts
I believe we will start hearing further noise in the market about increased plantings of corn at the expense of beans for the 2019/20 crop season. While some rumors on this are slowly creeping into the market, the reasons are not without merit in my view. Whether it becomes reality is another matter as trade disputes getting resolved along with …
Livestock Report
February Live Cattle reversed course yet again, trading up from yesterday’s lows and moving higher all session long. It inched out a new high at 121.75, trading above the November 30 high of 121.625. It ended the session near the high and sets up a possible break out scenario for Wednesday. If Cattle opens higher on strong volume look to …
Livestock Report
February Live Cattle remains in its trading range as a stronger cash market once again fails to lead futures higher. Cash cattle traded as high as 118.50 on a live basis on Friday, with dressed cattle at 185.00. Futures opened near the session high and traded lower towards support at 119.15. The range was 121.425 – 119.825. The market continues …
Trading the Beginning of the End…
MACRO BACKDROP: Welcome back, market readers. A bittersweet start to December, I think. Bitter, for lack of a better term, was the passing of the late George H. W. Bush on Friday Nov. 30th; yet, sweet was when we consider events from the weekend. Over the weekend, it appears that some headway was made in the G-20 meetings, according to …
Livestock Report – Lean Hogs
February Lean Hogs pulled back towards support at 63.325 early in the week as Chinese jawboning about nothing to see here caused traders to lighten long positions. Traders hadn’t seen the Chinese increasing imports and were worried that maybe they did have control over the African swine fever as they claimed. Show me the imports! Well guess what …. Thursday’s …