1/24/25
.
If you would like to receive more information on the commodity markets, please use the link to join my email list Sign Up Now
.
.
The Livestock Markets were all higher again today. The Fats made new contract high again today. April’25 Live Cattle was 2.30 higher today and settled at 203.02 ½. Today’s high was 203 ½ and that is the new contract high as well. Today’s low was 200.87 ½ and the 1-month low is 189.80. Since 12/24 April’25 Live Cattle are 13.47 ½ higher or more than 7%. The Feeders plowed ahead today. March’25 Feeder Cattle were 2.50 higher today and settled at 276.57 ½. Today’s high was 277.25 and that is the new contract high as well. Today’s low was 273.72 ½ and the 1-month low is 255.05. Since 12/24 March’25 Feeder Cattle are 21.57 ½ higher or almost 8 ½ %. The Hogs gained a buck today. April’25 Lean Hogs were 1.00 higher today and settled at 88.20. Today’s high was 88.45 and the 1-month high is 91.37 ½. Today’s low was 86.75 and the 1-month low is 84.50. Since 12/24 April’25 Lean Hogs are 97 ½ cents lower or more than 1%. Well. do you think someone knew something? New highs across the board today in the Cattle Markets. I am not sure how the Cattle Business can be profitable in the future with rising replacement costs, feed costs, and general overhead. That is before the possibility of tariffs on Canada and Mexico. However, nothing goes straight up forever. The cattle on Feed Report was Bullish, but how much of that is already priced in the Market. It looks like the Funds had some good information, along with the Packers most likely being long futures for a long time. That could be why they continue to outbid themselves in the cash market. The continued rally today could also be the fear of tariffs in Canada. There is a large amount of Cattle brought into the US from Canada every year. We are still waiting for the US border to reopen to Cattle from Mexico, and the new rumors are that it could happen next week. That should help turn the market around, and whenever it does turn, the Funds will have to liquidate. The Cold Storage Report was released today, and it stated that red meat in freezers was up 3% from last month, but down 5% from last year. The beef cutout this morning was down $2.19, and, in the afternoon, it was down $3.04. I bought more Feeder Cattle Puts on the close today, near term and long term, and long term Puts in the Fats.
.
If you would like information on opening an account, please use this link Sign Up Now only 5 account pages need to be signed.
.
.
The Grain Markets continued lower today. The Beans dropped about a dime today. March’25 Soybeans were 9 3/4 cents lower today and settled at 1055 ¾. Today’s high was 1063 and the 1-month high is 1076 ¼. Today’s low was 1046 ¾ and the 1-month low is 981. Since 12/24 March’25 Soybeans are 74 ½ cents higher or almost 8%. The Corn market was lower as well today. March’25 Corn was 3 ¼ cents lower today and settled at 486 ½. Today’s high was 489 ½ and the 1-month high is 494 ½. Today’s low was 483 ½ and the 1-month low is 448 ½. Since 12/24 March’25 Corn is 38 cents higher or almost 8 ½%. The Wheat Market was down double digits today. March’25 Wheat was 10 cents lower today and settled at 554. Today’s high was 552 ¼ and the 1-month high is 566 ¾. Today’s low was 541 ¼ and the 1-month and 52-week low is 526. Since 12/24 March’25 Wheat is 9 ¼ cents higher or almost 2%. The Grains continue to swing up and down, reacting to something new every day, and that should be used to your advantage. I still feel the Beans are going to break, and the panic from a dry Argentina is not worth it. The Brazilian Bean harvest has begun, and it is slightly behind pace, but they will catch up, they always do, because they need to get the Corn crop in. The Brazilian crop will be huge, record setting, and bigger than expected. China does not want Beans from the US, but who knows what kind of deal President Trump will end getting. Will the Chinese buy more US commodities, or will new tariffs be put in place? Don’t forget China has been stockpiling Soybeans for a year, and purchased a large amount from Brazil already, and has already refused some of those shipments because their ports are backed up. The only upside thing I see to watch out for is potential lack of moisture in the Midwest this Winter, but there is still plenty of time. I still like the Soybean Market at the 1020 level. and then the 980 level. The Corn Market has been strong, but I still don’t think it is ready for 5.00. We will have to see what deals are made with China. The Wheat Market continues to suck, but I still like the 580 level. Have a Blessed Weekend.
.
.
.
If you are interested in the OTC Markets, let me know and I can send you a few examples of how it works. If you are a Producer and have a specific price that you would like to protect or would like to sell above the current market prices give me a call.
.
I will be in San Antonio for Cattle Con on February 3rd – 7th, and in Denver for the Commodity Classic on March 1st – 5th. Stop by and say hello.
.
.
Today’s Brazil Weather Radar Map Below.
.
.
.
If you would like to receive more information on the commodity markets, please use the link to join my email list Sign Up Now
.
.
.
Thank you to all of my old and new Customers. I appreciate your business. To those of you that are close to opening an account, please call me if you have any questions, and I look forward to working with you soon. To anyone thinking about opening a Hedge or Trading account, give me a call and we can talk about it.
.
.
Most Recent Walsh Gamma Trader Link Walsh Gamma Trader
.
-Bill
I have market commentary and option charts in
Pure Hedge – Livestock
Pure Hedge – Grain
Call for specific trade recommendations.
Email me for free research.
Bill Allen
Senior Account Executive
Direct: 1 312 957 8079
WALSH TRADING INC.
311 South Wacker Drive
Suite 540
Chicago, Illinois 60606
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.