The excitement over the US – Mexico trade agreement withered away rather quickly as October Lean Hogs gap opened higher and then collapsed, trading below the Monday low and the Cattle markets ate into their bullish candles, erasing most of the gains before a late day rally left cattle on firmer footing. The naysayers came out in force on Tuesday, criticizing the agreement and crying over poor Canada being left out of the deal. Well Canada quickly jumped into the talks and it seems to be eager to see how it will work for them. There still is a lot of work to be done but a framework is in place and once taboo disagreements seem to have been addressed with Mexico. The markets will continue to be volatile as talking head opinions play with traders’ emotions. Stay tuned!
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, August 30th at 3:00 pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109,
www.walshtrading.com
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.