Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

2/12/24

The Grains all gained today, while the Cattle markets were mixed. The Fats gave a little back today, and the Feeders gained over a dollar. April’24 Live Cattle was 0.800 lower today and settled at 185.925, just above today’s low of 185.525. Today’s high of 187.575 is also the 1-month high. The 1-month low is 173.525. Since 2/12 April’24 Live Cattle is 11.825 higher or almost 7%. March’24 Feeder Cattle gained 1.675 today and settled at 248.825. Today’s high of 249.900 is also the 1-month high. Today’s low was 247.100 and the 1-month low is 226.875. Since 2/12 March’24 Feeder Cattle are 21.250 higher or over 9%. The Hogs were slightly lower today. April’24 Lean Hogs were 0.025 lower today and settled at 81.125, near the middle of today’s trading range. Today’s high was 81.725 and the low was 80.350. the 1-month high is 85.925 and the 1-month low is 76.725.  Since 2/12 April’24 Lean Hogs are 2.575 higher or over 3%. The Grains were all higher today, with the Beans leading the way. March’24 Soybeans were 9 ½ cents higher today and settled at 1193, not far below today’s high of 1196 ¾. Today’s low was 1182 ½. The 1-month high is 1247 ½, and the 1-month low is 1179 ¼. The current 52-week low is 47 ¾ cents away at 1145 ¼. Since 2/12 March’24 Soybeans are 30 ¼ cents lower or about 2 ½%.  The Corn had a small gain today. March’24 Corn was 1 ½ cents higher today and settled at 430 ½. Today’s high was 432 ¾ and the 1-month high is 453 ¼. Today’s low of 427 ¾ is also the 1-month and 52-week low. Since 2/12 March’24 Corn is 17 cents lower or close to 4%. The Wheat Market had a small gain to close positive for the day. March’24 Wheat was ¾ of a cent higher today and settled at 597 ½. Today’s high was 603 and the low was 588 ½. The 1-month high is 617 ¼ and the 1-month low is 573 ¼. Since 2/12 March’24 Wheat is 2 ¾ cents higher or about ½%.  My opinion on the markets has not changed. I am still Bearish Cattle and Soybeans. I feel the Cattle market will turnaround soon, and break through the Summer. I believe this is the second chance you wanted, and I recommend you take it and protect your downside exposure. I still feel a collapse in the Soybean Market is eminent. I feel that the South American crops will be bigger than expected. The weather has improved, and rain showers are expected through the region for the next week. The harvest is underway, and ahead of schedule. I also feel that with the current price of Corn and Beans, many acres will be switched to Soybeans, and don’t forget about the WASDE report and the ending stocks number at 315, and then there is always the question of demand. I feel that the $10.00 level is very possible. I recommend hedging and protecting your risk to the downside, and there are many ways to accomplish that. Having a conversation about risk is easy, compared to hoping for things to happen, that usually has lots of risk. I will be at the Commodity Classic in Houston, on the 28th of February. Let me know if you would like to meet there.

-Bill

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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