Cattle markets continue to trade in a range. Feeder Cattle is trading between 159.90 and 155.525. Live Cattle is trading between 119.75 and 116.625. The cash market on a live basis between 110.00 and 112.00 and dressed between 173.00 and 175.00. Boxed beef between 203.00 and 206.00. Supply and demand in a balanced (ho hum) state. What can alter the balance? Seasonality tends to lead prices higher, but it hasn’t taken hold. Equity markets have been strong, but are wavering. Gasoline prices remain reasonable, but have been inching higher. Crude Oil prices broke out to new highs, but have pulled back. It is a tug of war of forces that remains in a precariously balanced state. We have the mid-term elections coming up in less than a month. This could be the back breaker. With a Republican president in office and the Democrats gain control of the House or Senate or both houses we could see Washington D.C. battle along party lines. Uncertainty may take hold of markets and price could be adversely affected. If the Republicans remain in control then its business as usual and markets should react to changes in the supply/ demand equation.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, October 12th at 2:30 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.