Grain and Livestock Markets Finish Higher on Wednesday

Transcript:

This is Oliver Sloup blue line features coming to you from the Chicago Board of Trade. Today is Wednesday, July 17. We just had the grain livestock markets finish up trades for the day. Before we get into today’s price action, I do want to remind you if you’ve not signed up for a free trial of our daily commodity commentary, head over to Blue Line futures.com/free trial and then you can select the markets that interests you most whether that be grains, livestock energies or precious metals which have been on the move quite a bit here as of late, got a great team in house that puts that together also before we get into prices. If you’re watching this on YouTube, give us a thumbs up and be sure to subscribe for more daily updates from the commodity space now that we got that out of the way we can go ahead and get into today’s price action so corn, beans, wheat all mostly higher with the exception of a couple contracts out there start with September corn two and a quarter cents higher to settle at 398 December new crop futures three cents higher to 411 and three quarters over on the soybeans front month August futures six and three quarter cents higher to 1097. And a quarter new crop November contract and it struggled a little bit more down two and a quarter cents to settle at 1041. Moving out to the wheat market. We saw September Chicago we eight and a half cents higher to settle at 439 and a quarter hard red wheat 10 and three quarter cents higher on that September contract to settle at 561. And out in the spring wheat 16 cents higher in that September contract to settle at 591 and three quarters on the livestock side again mostly higher on the day. October cattle $1 oh five higher to settle at 185 57. Mentioning October because it has recently overtaken August in terms of trade volume and with first notice day just about two weeks away. In that August contract you’re going to continue to see that volume pick up in the October contract the feeders from month August contract down seven cents but the next month all marginally higher on the day, lean hogs tacked on to big gains from yesterday’s trade the August contract today settling 37 cents higher 9165. You go out to October, December, February saw bigger gains dollar plus dollar and a half rallies on the session. So nice day for commodities, agricultural commodities. Specifically, I do want to touch on a couple of these, the December corn contract is what we’ve got pulled up here. And you may be looking at this saying hey, that’s not a December corn contract chart? Well it is it’s just an hourly chart. And the daily chart obviously doesn’t look as pretty. But I wanted to zoom in on the hourly chart because it shows that we’re building some ground here building a base in this market, so long as we can defend a low into this range near $4 to 403. I think bulls have a good case to be made for some upside potential here. Now today’s closed, right at the upper end of this triangle or this rectangle that we’ve been trading in really since July 8. So we’ve been chopping around, there’s been some good intraday opportunities. But the bulls really want to see a conviction close out above this resistance to potentially spark some additional short covering relief. Where would those next potential spots be? Well, I think the next potential spot would be near 420. And then above that, you’d be looking at the breakdown point from that quarterly stocks report, which is closer to 430 and 434. So there are some silver linings out there. But the bull certainly have their work cut out for them to get to those next price objectives. The first one being skipped out above 413 to 416. If we can do that on a closing basis. I think that puts a nice little tailwind in the market. Now moving over to we’ll jump over to the cattle complex real quick. Take a look at the December live cattle contract. We’ve just been chopping around relatively sideways since for the last couple of months. And I think there’s probably some more upside potential I’d mentioned the August contract, going into first notice day here in a couple of weeks. With the cash market so well above the futures market. I wouldn’t be surprised to see those converge a little bit. Maybe the futures do a little bit more work. And if that’s the case, I think you’ll see some of these deferred markets rally. So if we get December up here near 188 189 and change, maybe 190. I think that could potentially be an opportunity, especially for hedgers to manage some downside risk. There’s still a lot of growing concerns out there. In the cattle market. I know that there’s a good fundamental backdrop but the participation from the funds is really been lackluster as of late. Then you’ve got lingering headline risk. You got an election, you’ve got bird flu, he’s got a little softer economic data in our bonds going to really want to stick their neck out too far with those lingering headlines and you’re also in peak demand season right now what happens once we get past that. So again, the overall fundamental backdrop for cat All pretty steady. But there are some headline risks out there. options can be a great way to mitigate some downside risk while keeping the upside open. So that’s certainly something we’re looking at for clients. So that’s what we’re looking at. That’s what you should be looking at too. It’s Oliver Sloup with blue line futures. Remember, trading futures and options involves substantial risk of loss, and it’s not suitable for all investors.

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.