Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

11/11/24 If you would like to receive more information on the commodity markets, please use the link to join our email list Sign Up Now

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 The Livestock Markets were generally higher today, with the Fats unchanged for the day.  December’24 Live Cattle were unchanged today and settled at 183.70. Today’s high was 184.25 and the 1-month high is 189.80. Today’s low was 182.80 and that is the 1-month low as well. Since 10/11 December’24 Live Cattle are 3.87 ½ lower or more than 2%. The Feeders were more than a buck and a half lower early today but climbed higher throughout the day. January’25 Feeder Cattle were 82 ½ cents higher today and settled at 242.25. Today’s high was 242.40 and the 1-month high is 248.52 ½. Today’s low was 239.90 and the 1-month low is 239.50. Since 10/11 January’25 Feeder Cattle are 5.07 ½ lower or more than 2%. The Hogs had a bounce today. December’24 Lean Hogs were 1.35 higher today and settled at 81.77 ½. Today’s high was 82.20 and the 1-month high is 85.07 ½. Today’s low was 80.87 ½ and the 1-month low is 75.10. Since 10/11 December’24 Lean Hogs are 4.00 higher or more than 5%. The Cattle Markets opened lower this morning and the Fats made new lows. December’24 Fats traded down to 182.80 and set a new 1-month low before heading back to unchanged for the day. The January’25 Feeders traded down to 239.90, and that was just 40 cents from the 1-month low, and then headed higher and settled 82 ½ cents higher for the day. The Cattle Markets feel heavy again and I believe the Fats and Feeders are still heading lower. The Cash market was down for the second consecutive week, and last week was $3.29 lower with a price average of $186.53. Cash prices are expected to decline again this week with the Packers holding a large number of Cattle. The Cattle on Feed Report is a week from Friday and I already hearing about how full the feedlots are. I heard early estimates for Cattle on Feed numbers last week, and if they are close to accurate, I think we will see much lower prices. The estimates were for 101% Cattle on Feed, 105% Marketings, and 105% Placements as well. We will see if those estimates hold water soon. I still feel the December’25 Fats will trade down to the 50% retracement from the 52-week high/low of 181.94, and then lower from there. The 181.94 level was only 86 cents away on today’s lows. 174 is my next level lower from there. I still think the Feeders are in trouble and heading lower. The January’25 Feeders traded just 8 cents from the 50-Day moving average of 239.82 and 40 cents from the 1-month low of 239.50. My next level lower from there is 234, and much lower is very possible. The Hogs rallied back 1.35 today, but I feel they will be lower again soon. 73.75 is where I think they can go. The 50-Day moving average is 76.68, 1-month low is 75.10, 200-Day moving average is 74.35, 50% retracement from the 52-week high/low is 73.45, and the 100-Day moving average is 72.30. I remain Bearish the Fats, Feeders, and Hogs, until I see a reason not to be. It’s turkey time anyway. If you would like more information, please use this link Sign Up Now

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     The Grains were all lower today, with the Wheat closing almost 15 cents off the lows. January’25 Soybeans were 8 cents lower today and settled at 1022 ¼. Today’s high was 1042 ¼ and the 1-month high is 1044. Today’s low was 1019 ½ and the 1-month low is 977 ¼. Since 10/11 January’25 Soybeans are 1 ¼ cents lower or fractionally lower. The Corn Market was only down a penny today. December’24 Corn was 1 cent lower today and settled at 430. Today’s high was 432 and the 1-month high is 447 ¾. Today’s low was 426 ½ and the 1-month low is 414. Since 10/11 December’24 Corn is 9 ¾ cents higher or just almost 2 ½%. The Wheat Market was lower as well today. December’24 Wheat was 7 cents lower today and settled at 565 ½. Today’s high was 572 ¾ and the 1-month high is 601. Today’s low was 551 ¾ and that is the new 1-month low as well. Since 10/11 December’24 Wheat is 33 ½ cents lower or more than 5 ½%. Well, the Beans traded up to 1042 ¼ last night, hope you sold them there. The January’24 Soybeans settled 20 cents lower from the overnight highs, and 2 ¾ cents above today’s low of 1019 ½. I would continue to sell into any 20-cent soybean rally early and often. The Corn Market held in there today, and only settled 1 cent lower. I feel we will soon see the December’24 Corn retest the 435 level, and trade through it. For the December’24 Corn the 50% retracement from the 52-week high/low is 446 ¾, the 1-month high is 447 ¾, and the 200-Day moving average is 456. The December’24 Wheat had a 21-cent range today and settled above the middle of that range. The Wheat has been heading lower for a while, and I feel it has been pushed too low. I sent out a couple trades today, and the first one this morning was March’25 Wheat vs March’25 Corn. The spread between them has moved in too much too fast, and I recommended buying the Wheat when the spread was 1.29 and it settled today at 1.37 ¾. I feel the Corn and Wheat are both heading higher, so I used the Option Markets and sold some Corn Puts and Bought a Wheat Call. I sent the trade to many of you this morning. If you are interested is seeing that trade or any new trades, please use this link Sign Up Now I feel the Wheat is due for a rally, and the second trade I sent out today will capture any upswing in the market. The December’24 Wheat made a new 1-month low today, and then rallied 13 ¾ cents off the low. Today was a good day. There will be plenty of opportunity to come in these markets. If you want to open an account to hedge or trade call me at 312-957-8079 or use this link Sign Up Now I am still Bearish the Fats, Feeders, Hogs, Soybean Meal and the Soybeans, but be careful with the beans. I am still Bullish the Corn, Wheat, Soybean Oil, Canola Oil, and Natural Gas. If you open an account to hedge or trade, I will manage it for you and take some stress out of your life. I look forward to speaking with you. Thank you to all of our Great Veterans!

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-Bill

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-Bill

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-Bill

312-957-8079

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Bill Allen

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