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Cattle complex Up For The Week


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The Cattle Complex recovered from contract lows made on Monday. However, Friday’s close was less than stellar. December LC traded down to 98.90, off a mind boggling 36.10 ($14,440 PC) from the 135.00 contract high made 10/28/15. Today’s inside candle indicates uncertainty. After testing the weekly high (103.82) made yesterday, the market was able to close higher than yesterday’s close of 102.82, but below Wednesday’s close of 102.95. Dec LC was able to close above the 10 day MA for the first time since September 22nd, and the close above this week’s average cash trade has added some optimism. However, there are still several questions to be answered before any kind of sustainable rally can occur. Will the supply of fed cattle tighten over the next 60 days as expected?, will the futures continue to trade premium to cash?, will cheap corn tempt feeders to hold back cattle which will lead to an already high tonnage level?; and will The positive premium in futures over cash continue to widen? From their Sept high to the recent lows, Nov FC dropped 18.95, Dec LC dropped 11.00 from said period; Nov FC closed 4.52 off Monday’s low, Dec LC closed 4.02 above Monday’s low. The Dec weekly live chart appears to be stronger than that of the Nov feeders, which is a positive.

Marketing conditions have improved in recent weeks and being prepared with a marketing plan will allow you to take fullest advantage of prices and maximize the value received for your calves.

Call Mike for a free consultation 312 483-2186.

Below is a list of people who I feel could benefit from the services provided at Long Leaf Trading Group:

*Individuals or firms with intentions of selling cash (physical) livestock or grain at some point in the future

*Potential sellers of livestock and grain products who are primarily concerned about falling prices in their local markets

*Those that are holding inventory and would be exposed to the risk of falling prices which would have a negative effect on their inventory value and profit margins

*Individuals who have intentions of buying cash (physical) livestock and grain products in the future and are concerned about rising prices which would also have a negative impact on their profitability.

If you would like to hear some of my trade recommendations or have any questions regarding the markets please feel free to give me a call. Also if you would like to see how the various accounts we offer are performing in these turbulent market conditions, please contact me at312.483.2186 or toll-free 866.372.1014 or via email at mbauer@longleaftrading.com.

RISK DISCLAIMER: There is a significant risk of loss in trading commodities. Past performance is not necessarily indicative of future results. Only risk capital should be used. Losses from commodity investments may be greater than the initial investment(s). Commodity trading is not appropriate for all investors, and a commodity investment must be evaluated in light of the potential for risk of loss as well as the possibility of profit. Please contact your account representative for more information on these risks.

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Mike started his career at the CME in 1987, working as a runner during summer breaks while attending the University of Illinois. After College, Michael began his career in commodities with Refco before moving on to RJ Obrien, where he became manager of RJ O’ Brien’s New York Order Desk. Michael has knowledge in all commodity sectors but focuses primarily in the Agricultural & Livestock Markets. He feels a good blend between fundamentals and technical aspects contribute to being a successful trader. Please contact Michael at (312) 483-2186 or mbauer@longleaftrading.com

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