Live Cattle: Just about every suppressant has been used to try to douse this bull market. Barring the opening of the border or relinquish of tariffs, this fire is going to have to run out of fuel. That fuel being too much processing and production capacity for the amount of inventory available. Even wider spreads between starting feeder and finished fat today. Considering the volatile state of foreign affairs, where trading partners are circumventing the US and building new lines of supplies, gold, and now silver making new historical highs in what is believed a flight to quality, this is an interesting time frame to be increasing leverage of cattle. Futures traders are walking hand in hand with cash, if not offering premiums. Consider your ability to create a predetermined marketing parameter that may or may not be available when physical time frames arrive, and act accordingly.
Feeder Cattle: As you know, the cattle feeding capacity is what is being fought over. When, or if, there is something to shift the balance where that space is no longer available, it would be anticipated to soften the bid for feeder cattle. Other than that, the industry is in discovery of what price levels of cattle can be sustained.
Corn: Corn was soft with beans firm. Not much took place today in grain trading. With back and forth on a China meeting, and no way to make payments on a subsidy package until the government opens up again, these markets may not go anywhere for a while. I continue to recommend owning July at the money, out to the $4,80 calls on corn. This is a sales solicitation.
Energy: Energy was higher on the day. I anticipate this to be a correction of the move lower last week.
Bonds: Bonds were soft today, but not by much. The volatile action of the President is expected to continue to rile markets and create excessive volatility.
Christopher B. Swift is a commodity broker and consultant with Swift Trading Company in Nashville, TN. Mr. Swift authors the daily commentaries "Mid Day Cattle Comment" and "Shootin' the Bull" commentary found on his website @ www.shootinthebull.com
This is intended to be or is in the nature of a solicitation.” Futures trading is not for everyone. The risk of loss in trading futures can be substantial; therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Past performance is not indicative of future results, and there is no assurance that your trading experience will be similar to the past performance.
