Cattle Commentary

Peter McGinn General Commentary

Cattle futures fell for a third straight session today following the November 20th Cattle on Feed report. It showed a small recovery by the time it settled at 154.675, down only 45 cents for the day. Based on technical analysis the low of the day hit 154.125, right at the 62% retracement level before closing above the 40 DMA indicating that there might be a small reversal in the market coming. Volume today was higher than Friday’s (as expected) but also higher than last Tuesday’s session, and in my opinion, we are going to see some more follow through selling going forward this week.

Cash live cattle prices were significantly higher last week with the 5 area weighted average price reported at $156.10, which was up from 152.65 the previous week. The USDA estimated cattle slaughter came in at 112,000 head Friday and 81,000 head Saturday. This brought the total last week to 581,000 head, which is down from 647,000 the previous week but up from 568,000 a year ago. The estimated dressed cattle weight last week was 836 pounds, up a pound from a week ago but down from 843 a year ago. Estimated beef production last week was 484.6 pounds, up from 477.4 million a year ago.

**Call me for a free consultation for a marketing plan regarding your livestock needs.**

Peter McGinn

Account Executive

Walsh Trading, Inc.

Direct: 312-985-0931

Toll Free: 800-556-9411

pmcginn@walshtrading.com

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research