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 cattle in Iowa. Cutouts dropped 0.72 to 213.28 for choice and 1.74 to 198.50 for select, with the choice/ select spread widening to 14.78 on 154 loads. It is difficult to be excited for the cattle markets as they consolidate within the trading range. Watch for a break out on good volume of the trading range in either direction for these markets; otherwise keep your hands in your pockets. February Lean Hogs are pulling back as traders await the upcoming Trump – Xi meeting in Argentina and want to see China importing more hogs in response to the African swine fever.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, November 29th 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.* *
Senior Market Strategist
Walsh Trading, Inc.
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.