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Morning Livestock Comments


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Below are the early morning Livestock Comments from my twice a day newsletter, Commodity Insite. Hope you find something of interest. And the comments below were broadcast to my subscribers and brokerage clients just before 7 a.m. Chicago time this morning.

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livestock complex

Friday, was a sea of red ink with the livestock complex. Prices were sharply lower off the opening bell and simply remained in the ugly the rest of the session. At settlement, feeders and live cattle were limit down at 450 points. Lean hog futures ended limit down at 450 points as well. Summer cattle futures were down 400 and summer hogs off 390. It was a woefully bearish close to a week that was without equal in terms of volatility.

On Friday, I suggested buying (1)August live cattle and selling (1) August lean hog. The spread was doing ok until the final few minutes of dealings when cattle lost ground to hogs. Those still holding that particular spread position should sit tight. Let's give the trade a bit of room today. Sit tight on the Friday, trading suggestion.


Once more, the volatility in the outside markets is intense. The critters are likely to come in lower based on the poor showing from Friday. Or, they may not. I favor the long side of cattle at this point but also feel hog prices due to last week's Pig Crop report may work lower. Stay alert as I may come out with a new trading idea. Stay alert.

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There is no substitute for timely and accurate information. In particular with historic volatility being seen for the entire Big Four: stocks, bonds, currencies and commodities. In the current highly charged environment, trading is not for the faint of heart. Every minute is challenging. Every hour is challenging and so is every day. And it has been that way since January.

If I can be of help drop me a line at commodityinsite1@gmail.com. Or, call me at 406 682 5010. Please wear a face mask and surgical gloves if you choose to call. Trying to be careful here!

The time is 12:45 p.m. Chicago






This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solutionss Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.


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The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions 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.







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About the author


Jerry Welch has been in the futures industry since the late 1970's and is a true veteran of the markets. He has been quoted often in Wall Street Journal and is author of Commodity Insite, one of the longest commodity futures newspaper columns in history. His weekly column has been published each week since the mid 1980's and is one of the most recognized names in the world of commodities.

Mr. Welch is also known widely as a, "so so" flyfisherman.  

His column is published by the Illinois Agri News in La Salle, Illinois, Cattle Today, in Fayette, Alabama as well as Consensus, in Kansas City, Kansas.

He can be contacted at 406.682.5010 for a view of his, "twice a day" market column that includes price forecasts and trading suggestions.

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