1/2/24
Well, the Soybean Market started the year lower, exactly how I thought it was going to… The Cattle Markets rallied to start the year, and I used that opportunity to structure downside Option Trades in March’24 Feeders. February’24 Live Cattle started the year with a solid gain of 3.425 and settled at 171.925. Today’s high of 172.650 is also the 1-month high. The 1-month and 52-week low is 162.400. March’24 Feeder Cattle gained 3.350 today and settled at 226.450. Today’s high of 227.925 is also the 1-month high. Today’s low was 22.950, and the 1-month and 52-week low is 210.625. The Hogs continued their decline today. February’24 Lean Hogs fell 2.650 today and settled at 65.325. Today’s low of 64.675 is also the 1-month and 52-week low. The Soybean market opened the new year and then fell apart. March’24 Soybeans dropped 24 ½ cents today and settled at 1273 ½. Today’s low of 1267 ¼ is also the 1-month low. Just a reminder, the 52-week low is 1145 ¼. The Corn Market also broke today. March’24 Corn broke 7 ½ cents today and settled at 463 ¾. Today’s low of 462 ½ is also the 1-month and 52-week low. The Wheat Market also fell like a rock to start the year. March Wheat’24 opened on the highs and then followed the Beans straight down. March’24 Wheat dropped 21 ¼ cents today and settled at 606 ¾. Today’s low of 604 ¾ is not far from the 1-month low of 600 ¼. I took advantage of the rally in the Cattle today, and I will continue to sell into strength, until I see something to change my mind. The Option Trade I structured on 12/20/23, in March’24 Soybeans, using today’s settlement price, has gained 49 1/8 cents. That’s from putting the trade package on once, it also came with a credit. Obviously, if the market had rallied, that would be negative, but the option trade would still be active, until it reached my “out levels”. If you are not being advised properly or don’t know how to take advantage of these markets, give me a call. Every trade has risk, and not all trades are profitable, but when you can use options, with a long-term view, structured correctly, and are right, it can be very rewarding. I still feel that the Beans will continue to break, and that we will see $11.50 Soybeans this Summer or Fall and continue lower from there. I still feel that the Cattle market will continue to break through the Summer. Timing is always everything, and a lot of opportunity still exists, across many commodity markets. If you are looking for change or want to start the new year fresh, let’s talk about it soon.
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1-312-957-8079
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Bill Allen
Senior Account Executive
Direct: 1 312 957 8079
WALSH TRADING INC.
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Chicago, Illinois 60604
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