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Trade Idea in the Live Cattle market taking you into the weekend!
The North Korean situation flared up again with fresh threats from their leader, and while the markets have taken these types of threats in stride before, there will be some anxiety that affects risk sentiment.
I’ll be looking for trade opportunities after the FOMC meeting; I usually don’t trade financial and other monetary policy sensitive futures ahead of the Fed meeting announcement. However, I did like today’s breakout setup in December live cattle, which gave us a good trade this morning. I have been bullish on live cattle recently as… Read more.
Global markets have not regained a “risk on” tone, but they are showing signs of looking beyond the turbulent events of the past few weeks.
Weekly Cattle Commentary 9/8/2017 This week’s cash prices saw late Friday sales of 105$, even with last week’s trades. Dressed sales topped out at 168$, 2$ higher than last week. Basis was plus 2$ the October Live board. Estimated weekly slaughter was 555K head, 26K larger than the same week last year. Box prices in… Read more.
The Fed symposium in Jackson Hole failed to offer any distinct direction on the state of the US economy, but recent Fed commentary suggested that a government shutdown off the budget ceiling battle and the possible effects from Hurricane Harvey could impact policy decisions next month.
From a positive perspective, the latest US nonfarm payroll readings have extended the slow, gradual improvement in the economy.
Familiar support in the live cattle market
This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Wednesday, July 26, 2017. August Live Cattle are now below the 100 day simple moving average for the first time since November, 2016. This bearish development could be reinforced by the move below the TAS demand level (green dots) at 114.100.… Read more.