Pure Hedge – Livestock and Grain

Bill AllenGeneral Commentary

7/22/24

The Cattle Markets climbed on the open but gave most of it back before the end of the day. October’24 Live Cattle were 1.12 ½ higher today and settled at 184.60. Today’s high was 185.40 and the 1-month high is 188.55. Today’s low was 183.80 and the 1-month low is 181.72 ½. Since 6/21 October’24 Live Cattle are 1.07 ½ higher or just over ½%. The Feeders closed more than 2 Dollars off the highs. August’24 Feeder Cattle were 80 cents higher today and settled at 255.82 ½. Today’s high was 258.42 ½ and the 1-month high is 263.90. Today’s low was 255.75 and the 1-month low is 253.45. Since 6/21 August’24 Feeder Cattle are 1.82 ½ lower or more than ½%. The Hogs had a nice gain. October’24 Lean Hogs were 1.42 ½ higher and settled at 75.97 ½. Today’s high was 76.12 ½ and the 1-month high is 76.60. Today’s low was 74.55 and the 1-month and 52-week low is 68.05. Since 6/21 October’24 Lean Hogs are 27 ½ cents lower or almost ½%.  The Cattle Markets were higher today after the Cattle on Feed Report on Friday. Placements were less than expected, but there were still 11.3 million Cattle on feed. Today looked like it was a great selling opportunity. There is some warm weather forecast for next week and that provided a lift in the market as well. Then the Cattle Markets broke off the highs. August’24 Live Cattle closed 70 cents off the highs. August’24 Feeders closed 2.02 ½ below the day’s highs. If August’24 Live Cattle break through 181.10, I feel the market will continue to break. August’24 Feeders need to break through the 1-month low of 253.45, and then their journey lower will begin. The Hogs have looked good recently. October’24 Lean Hogs closed near their highs and looked like they wanted to climb higher. The 1-month high is just 62 ½ cents away. I feel the Cattle Markets are getting tired supporting these levels, and the downside move is not far away. 

     The Grains took off today, and that was Opportunity. I hope you took advantage of it as well. November’24 Soybeans were 32 ¾ cents higher today and settled at 1068 ¾. Today’s high was 1069 ¾ and the 1-month high is 1133 ¾. Today’s low was 1040 ½ and the 1-month and 52-week low is 1031 ¾. Since 6/21 November’24 Soybeans are 51 ¼ cents lower or just over 4 ½%. The Corn Market had a good rally today. December’24 Corn was 10 ¼ cents higher today and settled at 415. Today’s high was 415 ½ and the 1-month high is 455. Today’s low was 405 ¼ and the 1-month and 52-week low is 403. Since 6/21 December’24 Corn is 38 ¼ cents lower or almost 8 ½%. The Wheat Market looked good too. September’24 Wheat was 5 ¼ cents higher today and settled at 548. Today’s high was 553 ½ and the 1-month high is 592 ¼. Today’s low was 540 ¼ and the 1-month and 52-week low is 525 ¼. Since 6/21 September’24 Wheat is 27 ¾ cents lower or just over 5%. Warm weather is forecast throughout the Midwest next week, but the nighttime temperatures are perfect. This is another seasonal weather scare over nothing. I believe it won’t be long till the Shorts take advantage of the higher prices and force the market lower again. December’24 Corn looked good today and closed over a dime higher, and just ½ a cent from the high. September’24 Wheat gained over 5 cents but closed 5 ½ cents off the high. If the Wheat can rally again tomorrow, it will be very positive for the Corn Market. The Brazil Soybean production estimates for 2025 are huge. According to Safras & Mercado Brazil Soybean Production in 2025 is pegged at 171.5MT vs 151.5MT in 2024. The 171.5 number is an all-time record.

Bill Allen

Senior Account Executive

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