8-13-10 – Hog Market Report
October hogs closed just one tick higher on the session after trading as much as 100 higher on the session early in the day. The market did manage to close 57n higher on the week after moving to the lowest level since June 1st. The market saw some early buying support to push to the highest level since August 6th as higher cash markets and concerns for slower marketings due to the heat helped to support. Ideas that marketings will pick-up next week as temperatures move back to normal helped to pressure the market into the mid-session which pushed futures lower on the day before closing near unchanged. In addition, traders see a gradual increase in production in the weeks ahead and this could limit the cash advance short-term. Cash hogs were steady to higher for today. Hog slaughter for the week was down 8.2% from last year.
8-13-10 – Cattle Market Report
October cattle finished 22 lower on the session and down 42 for the week. The market inched lower in choppy trade early with low volume noted after volatile trade on Wednesday and Thursday. A lack of new news at the end of the week was seen as a neutral force. Cash cattle and beef prices have pushed higher this week and there is talk of bookings by retailers for Labor Day which have supported. This has been offset by the stronger US dollar and continued economic concerns coming out of financial markets. Boxed beef cutout values were up $.37 at midday to $155.65. Slaughter for the week was 643,000 head from 644,000 last week.
After reading the hog and cattle recap, traders might want to take a peek at the commercial traders momentum. The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports. Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it. In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much. Let’s face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices. Therefore, trader should be able to incorporate this valuable information into their future market education.
The daily commentaries provide a review of each commodity’s traded price activity, an analysis of the factors that influenced price activity, a rundown of any reports released that day, and a look ahead at the next day’s schedule. Market commentaries for soybeans, corn, wheat, silver and gold are provided by CME Group. The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Andy Waldock circulates this blog. Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. For that reason, Andy Waldock may have positions for himself, his relatives, or his clients in any commodity future market discussed. The blog is meant for educational purposes and to develop a dialogue among those with an interest in the commodity future markets. The commodity markets may not be advisable for all investors due to the high degree of leverage. There is considerable risk in investing in commodity futures. If you are interested in reading other published articles, commenting on his writings or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.
