Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

6/24/24

 The Feeders opened about 2 dollars lower this morning, but the Cattle Markets rallied back to close positive on the day. August’24 Live Cattle were $1.67 ½ higher today and settled at 184.82 ½. Today’s High was 185.42 ½ and that is the new 1-month high as well. Today’s low was 182.50 and the 1-month low is 175.80. Since 5/24 August;24 Live Cattle are $3.70 higher or just over 2%. August’24 Feeder Cattle were 52 ½ cents higher today and settled at 258.90. Today’s high was 259.55 and the 1-month high is 264.95. Today’s low was 256.12 ½ and the 1-month low was 250.80. Since 5/24 August’24 Feeder Cattle are $1.32 ½ lower or just over ½%. Once again, the Hogs headed lower. August’24 Lean Hogs were $2.60 lower today and settled at 86.72 ½. Today’s high was 89.15 and the 1-month high is 97.37 ½. Today’s low was 86.27 ½ and that is the new 1-month and 52-week low. Since 5/24 August’24 Lean Hogs are 10.17 ½ lower or 10 ½%. The Cattle on Feed Report was on Friday and showed Placements were 5 ½% higher than expected. That is why the Cattle Market opened lower today. There was no discernible reason for the Cattle to rally back. I still expect a slide lower after the 4th of July weekend, if not tomorrow. The Hogs were hit hard again and settled near their lows. I found a few good Hog trades many months out. 

      The Grains were lower most of the day, and set new 1-month lows, before gaining most of it back before the close. November’24 Soybeans were 10 ½ cents higher today and settled at 1130 ½. Today’s high was 1132 ¾ and the 1-month high is 1225. Today’s low was 1111 ½ and that is the new 1-month and 52-week low. Since 5/24 November’24 Soybeans are 89 cents lower or close to 7 ½%. December’24 Corn was much lower today but bounce off the bottom. December’24 Corn was 1 ½ cents lower today and settled at 451 ¾. Today’s High was 455 and the 1-month high is 493. Today’s low was 443 and that is the new 1-month and 52-week high as well. Since 5/24 December’24 Corn is 36 ½ cents lower or almost 7 ½%. The Wheat Market followed the same pattern. September’24 Wheat weas 4 ¾ cents lower and settled at 571. Today’s high was 579 and the 1-month high is 739 ¼. Today’s low was 564 ¼ and that is also the new 1-month low. Since 5/24 September’24 Wheat is $1.46 ½ lower or almost 21%. The Soybeans were lower this morning but rallied almost 20 cents after making a new 1-month and 52-week low. Soybean Meal was strong, and that pulled the Beans up with it. Soybean inspections are poor as well, down over 16% from last year. The Corn Market should have rallied more than it did today. There is significant flooding in Minnesota and Western Iowa. September’24 Corn bounced 9 cents after making new contract lows, but still settled a penny lower for the day. I still feel the Soybeans are heading lower, and this should be a selling opportunity. I believe we will see the Corn Market higher tomorrow, and after the Acreage Report on Friday. 

Bill

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Bill Allen

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