8-10-10 Meat Market Recap
Cattle Market Report for 8-10-10
October cattle broke to their lowest level since August 3rd today but bounced back to just slightly lower on the session after a brief trade at higher on the session. The lack of deliveries against the August contract and a firm trade for beef yesterday and again today helped to support the nearby contracts. A sharp break in the stock market and the surge in the US dollar helped drive the market lower early in the session. Cash cattle offers in the southern plains came in at $95.00 this week with no bids yet. Traders are nervous that the poor profit margins of the packer may limit demand. Boxed beef cutout values were up $.67 at midday to $153.42 which helped to support.
Hog Market Report for 8-10-10
October hogs closed moderately higher on the session with an inside trading day as there was not enough support to move over yesterday & today’s highs. Talk of the oversold condition of the market after a 682 point, 5-day break from contract highs may have helped spark the bounce. News of higher pork values yesterday along with the stiff discount of futures to cash helped to provide support. Traders saw the rally as a positive development during a day when many commodity markets were under pressure from a sharp rally in the US dollar and concerns for the China economy. Cash hogs were $1.00 lower but this was anticipated and failed to spark much selling. The lean index came in at 85.51, down.31 on the day.
After reading the hog and cattle analysis, traders might want to take a peek at the commercial traders momentum. The Commercial Trader momentum can be tracked by using the Commodity Futures Trading Commission Commitment of Traders reports. Our idea is that, in a value driven commodity futures market no one knows fair value like the people who produce it or, have to use it. In fact, it is precisely their sense of value that provides the commodity market’s rhythmic meanderings that swing traders love so much. Let’s 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. Therefore, trader should be able to incorporate this valuable information into their future market education.
This blog is published by Andy Waldock. Andy Waldock is a financial advisor, asset manager, trader, analyst and brokerfor Commodity & Derivative Advisors, located in Sandusky, Ohio. Therefore, Andy Waldock may have positions for himself, his relatives, or his customers in any commodity future market discussed. The blog is meant to develop a discussion and educate those with an interest in the commodity future markets. The commodity markets employ a high degree of leverage and commodity trading may not be advisable for all investors. There is considerable risk in investing in commodity futures. If you are interested in reading other circulated articles, commenting on his writings or subscribing to Andy’s blog, please visit http://blog.commodityandderivativeadv.com, or if you have any questions, please call 1-866-990-0777.
The daily commentaries provide a rundown of each commodity’s traded price activity, an analysis of the factors that influenced price activity, a summary of any reports released that day, and a look ahead at the schedule for the next day. CME Group provides market commentaries for soybeans, corn, wheat, gold and silver. 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 purchase or sale of any futures or options contracts.
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