There isn’t much to say about the Live and Feeder Cattle markets today as they traded in a narrow range with the Feeders trading within Wednesday’s narrow range. There was a limited amount of trading in the cash market, with dressed cattle moving at $170.00 in the Iowa/ Minnesota area. It was quiet in the other 4 major areas. Packers lowered bids to $106.00 on a live basis with no takers. Boxed prices tumbled to $208.75 (down $1.65) for choice and select crashed below the $2.00 mark; declining $3.08 to $197.83. It looks like the seasonal down swing is in play. If you are looking for a short-term hedge in feeder cattle; you can buy the October 148 puts one time and sell two 158 calls for approximately $100.00 plus commission and fees. Meanwhile, the Hogs went limit up in the October contract with the deferred contracts lagging behind. The African swine fever continues to take its toll on the hog population in China with another new case found and more hogs going down in the already infected areas of China. The Chinese continue to implement controls and movement restrictions but have not been able to limit the disease as it is now in ten locations.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, September 7th 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.