“Shootin’ The Bull”
End of Day Market Recap
by Christopher Swift
7/24/2024
Live Cattle:
Front end fats narrowed basis while back end fats were in no hurry to. The July 5 and 9 dates continue to be significant in my analysis. That being, a trade above and it would appear that consumers are shifting into a more aggressive spending habit, while below the July 9 low would suggest consumers are contracting further in discretionary spending. There is little to add until one of the other is exceeded. I recommend you do whatever it takes to put a floor underneath your production. This is a sales solicitation.
Feeder Cattle:
The July 5 and July 10 dates hold the same expectations as does in the fats. I continue to believe the triangle in feeder cattle has come to its apex. The July 5 high is believed the apex. The July 10 low is perceived as the wave 1 low. A trade under this will suggest wave 1 & 2 complete with wave 3 down in progress. Prices have narrowed into nearly a pencil point. Be ready for a breakout sooner than later.
Hogs:
Hogs were higher with the index up $.28 at $90.08.
Corn:
Corn and beans were higher with corn remaining higher, but beans softened. I recommend placing a fence options hedge on new crop inventory you wish to market off the combine. This is a sales solicitation. This will consist of buying an at the money put and selling an out of the money call. The put will protect the downside, the call will reduce the premium paid for the put, and the spread between the two will be your marketing parameters. I urge you to consider this with corn having stagnated and the small rally in beans.
Energy:
Energy was hyper volatile today with significant price fluctuation in both directions multiple times today. With the down trend still believed in its fledgling state, this would not be uncommon. I expect energy prices to continue to decline and recommend you go hand to mouth with fuel needs for this falls needs. This is a sales solicitation.
Bonds:
Bonds traded both sides of unchanged but ended the day softer. Equities were sharply lower and the price movement of each suggests to expect a weakening economy.
This is intended to be or is in the nature of a solicitation. An investment in futures contracts is speculative, involves a high degree of risk and is suitable only for persons who can assume the risk of loss in excess of the margin deposits. You should carefully consider whether futures trading is appropriate for you in light of your investment experience, trading objectives, financial resources and other relevant circumstances. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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