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 …
MARCH US 10y note Option Strategy
The MARCH US 10y note in my opinion and based on what the Fed has said, has the potential to rally further because of lack of inflation while wages have risen, also weakening housing and autos. The potential for the Fed to not raise rates further after the December 18/19 meeting and indicate 2 instead of 3 rate hikes for …
Livestock Report
Cattle markets remain stagnant with February Live Cattle continuing to trade within the November 21st trading range (121.475 – 119.80) and January Feeder Cattle pulling back to the 200 DMA (147.70). It is also within its November 21st trading range (150.00 – 147.05). Cash markets remain quiet with limited trade at 116.00 for live cattle and at 183.00 for dressed …
March Sugar Option Strategy
It is my opinion that sugar will be further pressured by stronger production numbers and shifting cane away from ethanol production to sugar use adding to solid supply and pressuring sugar prices lower. March 2019 Sugar Futures trading $12.34 last as of this writing, I am looking for Sugar to break lower to the $11.50/11.25 area, possibly testing $11.00 Consider …
The Calm Before the Storm
MACRO BACKDROP: Happy Cyber Monday, folks. I hope you all had a great Thanksgiving last week and ate a lot of turkey. If you were out shopping on Friday, I hope you made it out alive. In general, markets appeared to have moved off of weak volume last week due to the holiday departure. This week, however, it appears all …