November 29, 2010

Hog and Cattle Market Recap Report for 8-23-10

By Planet Wealth

pstrong8-23-10 -nbsp; Hog Market Reportnbsp;/strong/p
pOctober hogs pushed sharply higher on the session and held on to the gains to close strong. Cash hogs traded steady to $1.00 higher this morning as compared with trade expectations for steady to lower trade. This happened late last week as well as traders were looking for weak packer demand and lower cash on Thursday and Friday but the cash trend and the pork cut-out value trend continues to support strong packer margins and this leaves packers with the incentive to pay up in the cash market. Packer demand has been stronger than anticipated. The spread between the pork cut-out and nearby futures is at the highest level since August of 2008 when China buying drove pork values to the prior record high before pork rallied to a new all-time high on Friday. The higher pork trade late Friday supported the early strong gains today.nbsp;/p
pstrong8-23-10 -nbsp; Cattle Market Reportnbsp;/strong/p
pOctober cattle finished sharply higher on the session and settled at a new contract high. With talk of higher cash cattle trade this week and continued strength in the beef market, small-covering and some new speculative buying helped support. Sellers for much of the past week have been waiting for a top in the beef market and this has not happened. A lack of surprises in the USDA Cattle-on-Feed report which came out with a bearish tilt on Friday afternoon was offset by continued strong gains in the beef market. Traders await cash cattle news this week with offers at $102 to start the week and no bids as compared with $100 trade last week. A 12-week high in beef prices has traders leaning to the positive side for cash cattle this week and October is trading at a discount. The USDA report showed a few more cattle available August 1st than traders expected but the focus of attention has quickly shifted to cash market news. Boxed-beef cut-out values at mid-session came in at $163.14, up $1.47./p
pAfter reading the cattle and hog review, traders might want to take a peek at the commercial traders momentum.nbsp;nbsp;The Commercial Trader momentum can be tracked by using the a href=http://www.commodityandderivativeadv.com/ target=_blankCommodity Futures Trading /aCommission a href=http://cotsignals.com/ target=_blankCommitment of Tradersnbsp;/areports.nbsp; Our thought is that, in a value driven commodity futures market no one knows honest value like the people who produce it or, have tonbsp;use it.nbsp; In fact, it is preciselynbsp;their sense of value that provides the commodity markets rhythmic meanderings that swing traders like so much.nbsp; Lets face it, producers know when their product is overvalue and it should be sold just as well as end line users know when they should be stocking up at low prices.nbsp; Therefore, tradernbsp;should be able to incorporate this valuable information into their a href=http://commodityandderivativeadv.com/services/systemsfuture market education./a/p
pAndynbsp;Waldocknbsp;circulates this blog.nbsp;nbsp;Andy Waldock is a financial advisor, broker, asset manager, trader, and analystfor Commodity amp; Derivative Advisors, located in Sandusky, Ohio.nbsp; As a result, Andy Waldock may have positions for himself, his relatives, or his clients in any commodity future market discussed.nbsp;The blog is meant to develop a discussionnbsp;and educatenbsp;those with an interest in the commodity future markets. The commodity markets may not be suitablenbsp;for all investors due to the high degree of leverage.nbsp; There is substantial risk in investing in commodity futures.nbsp; If you are interested in reading other published articles, commentingnbsp; on his publicationsnbsp;or subscribing to Andys blog,nbsp;please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777./p
pThe daily commentaries provide an analysis of the factors that influenced price activity, a recap of any reports released that day, a rundownnbsp;of each commoditys traded price activity, and a look ahead at the next days schedule.nbsp;nbsp;Market commentaries for wheat, soybeans, corn,nbsp;silver and gold are provided by CME Group.nbsp;nbsp; The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the buy or sale of any futures or options contracts./p
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