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.
On Friday 7/14 we got involved SHORT on the cattle near 117.50 when we saw old support becoming new resistance. The 118.00 level had some points that caught our attention.
This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Friday, July 14, 2017. WOW that was a HUGE one week swing to the long side in both Corn AND Soybeans (as of the close Tuesday, July 11). Net change of +147,679 in one week for corn was the 2nd biggest… Read more.
Commodity markets appear to have put in a significant low on June 22nd, right into the crude oil low and also in line with the first day of summer.
In retrospect, the recent sharp declines in equity prices and significant pressure on industrial commodities were justified by disappointing US scheduled data and the Fed’s move to notch interest rates upward.
Daniels Trading commodity futures broker Craig Turner discusses how Spring Wheat is leading the grain markets higher. Spring Wheat G/E was down 7% on Monday, coming in at 55% this week compared to 62% this week. Hot and dry conditions across the Midwest are also causing the corn crop stress. We talk about our trading… Read more.