Livestock Markets consolidated today as traders waited for the Fed and its interest rate adjustment and for the upcoming livestock reports. The fed raised rates a quarter percent and indicated 2 more rate hikes for next year. Equity markets didn’t like Chairman Powell’s comments and plunged. With rates moving higher and the potential for more hikes going forward optimism is fading and could adversely livestock markets if consumers pull back on spending. The Cattle on Feed report comes out Thursday afternoon after the market closes and is expected to show cattle on feed as of December 1 at 101.7% of last year, placements at 93.6% and marketings at 101.0%. Slaughter also is out after the close and cold storage figures come out on Friday at 11:00 AM CST. The Quarterly Hogs and Pigs report comes out after the close Thursday and estimates are for an increase of 2.7% in the hog herd between September 1st and December 1st.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, December 20th 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.