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Live Cattle Consolidation Ahead of Tyson Plant Reopening


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Strategy of the Day 12.4.2019

Live Cattle Consolidation Ahead of Tyson Plant Reopening

With only days to go before Tyson is scheduled to reopen its Kansas processing facility (which has the capacity amounting to 6% of the total cattle on feed) February 2020 live cattle futures have continued to consolidate in a 4-cent trading range. With recent contract highs made at 127.15 into the end of November, December has begun with a round of profit taking and closed the day at 124.15. The commitment of traders has shown a sizable net long speculative / non-commercial position in the live cattle, and its my opinion that end of year profit taking, coupled with increased production capabilities from Tyson (buy the rumor, sell the news into the plan reopening), has started to spook traders out of their long positions. While the uptrend...

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http://intranet.zaner.com/uploads/dhussey/SOTD/SOTD_12.4.2019.pdf



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Dan began his career in 2006 as an arbitrage and clearing clerk for Spyglass Options in the Eurodollar futures options pit on the floor of the Chicago Mercantile Exchange. Taking his employing brokers advice, Dan soon left the floor to pursue a career “behind the screens upstairs”, as there was an inherent lack of opportunity for market making in open outcry pits. After graduating from the University of Notre Dame in 2009 (and for the subsequent 10 years), Dan leveraged his IT background in networking and computer programing to begin developing computerized trading algorithms and trading systems for multiple private equity firms and his own account. He eventually found his specialization in trading carry trade dynamics in currency and interest rate futures; while simultaneously building his experience in trading both inter-market and intra-market spreads. His trading experience later expanded to include most commodity spreads, with an emphasis on carry trade economics in agricultural commodities. In 2016 Dan decided to take his career full circle by becoming a series 3 and 34 licensed broker; and expanded his outreach to the agriculture production community. In 2018, he joined Zaner Financial Services Ag Hedge division, bringing his knowledge and expertise of carry trade economics and continues expanding exposure to spread markets. Dan can be reached at (312)277-0110 by phone, @DanielHusseyJr on twitter, @DanSOTD on facebook, and emailed at dhussey@zaner.com.
 
 
Contributing author since 2/15/2019 

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