Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

1/17/24

The Cattle Markets rallied late today to close higher, while the Soybeans continued to break. April’24 Live Cattle gained 0.450 today and settled at 175.625, just below today’s high of 175.950, which is also the 1-month high. The 1-month low is 171.075 and the 52-week low is 165.400. Since 12/15 April’24 Live Cattle is up 2.775 or over 1 ½%. The Feeders also closed higher today. March’24 Feeder Cattle gained 0.950 today and settled at 229.775, just below today’s high of 229.950 which is also the 1-month high. The 1-month low is 221.100 and the 52-week low is 210.625. Since 12/15 March’24 Feeder Cattle have gained 7.600 or almost 3 ½%. The Hogs closed higher today as well. April’24 Lean Hogs gained 0.400 today and settled at 77.975, not too far below today’s high of 78.125. The 1-month and the 52-week low is 71.700.  Since 12/15 April’24 Lean Hogs are down 0.650 or just under 1%. The Soybean Market is spiraling out of control, and I feel is heading a lot lower. March’24 Soybeans dropped another 21 ½ cents today and settled at 1205 3/4, just above today’s low of 1205. The 1-month low is 1203. My research team has notified me that the 52-week low is still 1145 ¼… Since 12/15 March’24 Soybeans are down $1.26 or just short of 9 ½%. The Corn Market closed a little lower today. March’24 Corn was down 1 ¼ cents today and settled at 442 ¼. Today’s low of 440 is also the 1-month and the 52-week low. Since 12/15 March’24 Corn is down 40 ¾ cents or just short of 8 ½%. The Wheat market was able to close positively today. March’24 Wheat closed ½ cent higher today and settled at 582 ½. Today’s low of 577 ¾ is just above the 1-month low of 576 ¾. The 52-week low is 556 ¼. Since 12/15 March’24 Wheat is down 47 cents or almost 7 ½%. The Cattle Market opened flat this morning and then headed lower but were able to fight back and post a gain for the day. There is a Cattle on Feed Report this Friday, the 19th. I don’t expect too much action until after the report and trading starts again Monday morning. I structured several trades today in April’24 Live Cattle with the thought of a ten-dollar break. Obviously, I still feel the Cattle Markets are heading lower. I also structured many August’24 Soybean Option Trades, with the $11.50 level and below in mind. I have said many times, that I recommend selling into any strength, and I hope you did. I still feel that the Beans are heading a lot lower. If I see anything to change my mind, I will say it here. I will be at CattleCon24 in Orlando in a couple weeks. If you will be there and would like to schedule a meeting, give me a call.  

-Bill

312-957-8079

I have Option Strike prices every Friday.

I have market commentary and option charts in Pure Hedge – Livestock

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1-312-957-8079 

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BAllen@walshtrading.com 

Bill Allen

Senior Account Executive

Direct:      1 312 957 8079

ballen@walshtrading.com

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