Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary Leave a Comment

12/13/24 If you would like to receive more information on the commodity markets, please use the link to join my email list   Sign Up Now 

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     The Cattle Markets were mixed today, with the Fats higher and the Feeders lower, with a 5-year record long still in the Market. February’25 Live Cattle were 1.17 ½ cents higher today and settled at 192.02 ½. Today’s high was 192.25 and the 1-month high is 192.70. Today’s low was 190.37 ½  and the 1-month low is 184.65. Since 11/13 February’25 Live Cattle are 5.95 higher or more than 3%. The Feeders headed lower today.  January’25 Feeder Cattle were 70 cents lower today and settled at 257.65. Today’s high was 259.02 ½ and the 1-month high is 261.20. Today’s low was 257.65 and the 1-month low is 242.72 ½. Since 11/13 January’25 Feeder Cattle are 14.00 higher or almost 6%. The Hogs climbed higher today. February’25 Lean Hogs were 1.12 ½ higher today and settled at 85.60. Today’s high was 86.25 and the 1-month high is 89.60. Today’s low was 83.92 ½ and the 1-month low is 82.10. Since 11/13 February’25 Lean Hogs are 42 ½ cents lower or almost ½ %. The Cattle Markets have been been climbing higher for a while, and I believe that will come to an end soon. The February’25 Fats were lower yesterday, but bounced back today and gained 1.52 ½, and gained 5.85 for the week. I don’t think there is much upside left in the Fats Market. The 1-month high is 192.70 and todays high of 192.25 came close. The 52-week high is 194.85 and I think that number, and the 195 level can hold. The cash market has been strong, but how much longer can that last, especially with the ban on Cattle imports from Mexico about to end. New protocols have been established for Cattle coming from Mexico, and they will be inspected on the Mexican side of the boarder before they are allowed entry. I would expect the flow of Cattle from Mexico to begin again soon, and that will put pressure on a Market that is already overpriced. I believe the Feeders run higher is coming to an end as well. January’25 Feeders have dropped $1.40 over the last two trading sessions, and I feel that will continue next week as well. The Funds are still long, and there is a Cattle on Feed Report one Week from today, with the end of the month and end of the year coming quick. All of the major averages are below the 250 level for the January’25 Feeders, with the 200-Day moving average sitting at 249.65, the 50-Day at 248.89, and the 100-Day moving average at 242.52. I would expect some selling before the Cattle on Feed Report to occur. I continue to put on new hedges and trades for new and old customers in the Fats and the Feeders. If you would like more information, or my recommendations, click on this link  Sign Up Now     I am still hearing how full the feedlots are, and we will see what the Report has to say soon. The Hogs have been higher to last couple of days, but I think that can change again next week, and head lower with the Cattle Markets. 

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     The Grains were all lower today. January’25 Soybeans were 7 ½ cents lower today and settled at 988 ¼. Today’s high was 995 and the 1-month high is 1013 ¾. Today’s low was 986 and the 1-month low is 975 ¼. Since 11/13 January’25 Soybeans are 19 ½ cents lower or almost 2%. The Corn Market was down as well today. March’25 Corn was 1 ½ cents lower today and settled at 442. Today’s high was 444 ¼ and the 1-month high is 451 ¼. Today’s low was 440 and the 1-month low is 425 ½. Since 11/13 March’25 Corn is 4 ½ cents higher or about 1%. The Wheat Market traded lower today. March’25 Wheat was 6 ¼ cents lower today and settled at 552 ¼. Today’s high was 561 and the 1-month high is 577 ½. Today’s low was 551 ¼ and the 1-month and 52-week low is 540 ¼. Since 11/13 March’25 Wheat is 4 ¼ cents lower or almost 1%. I think the Beans could be stuck in a range between 970 and 1000, until we see just how big the South American crop will be. That is probably when we will see the lows in the Soybean Market. The Corn Market has looked good, and did what I thought it would. I recommended selling the March’25 Corn at 448, and 450 was the recent high. The Corn Market has slipped lower and today settled at 442. There is still an opportunity for the Corn to trade higher, but not just yet. The Wheat was lower again today, and has dropped 11 cents over the last two days, and March’25 settled a couple cents above the 250 level. The Wheat can still head in any direction, at anytime and I would rather be long than sell it here, with the 52-Week low sitting just 12 cents lower at 540 ¼. I am still Bullish the Soybean Oil and the Natural Gas Markets. If you would like more information or want to see my recommendations, use this link Sign Up Now  The Cattle on Feed Report is next Friday, and we will see how much price action that will produce. Next year will be here fast, and there is still time to open an account before this year ends. I will be at Cattle Con next year in San Antonio, February 3-6. I will also be at the Commodity Classic in Denver March 1-4. I will be attending other shows as well, but those are the first two of the year. Stop by the Straits Financial/Walsh Trading booth if you are there, I would like to meet you, and I hope to see you there. 

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Today’s Brazil Weather Radar Map Below. 

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Newest Walsh Gamma Trader Link Walsh Gamma Trader

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-Bill

312-957-8079

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Bill Allen

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