Shootin' the Bull about updating the index
“Shootin’ The Bull”
End of Day Market Recap
by Christopher Swift
12/16/2024
Live Cattle:
Today's comments will be via webinar to update the October 30, where I was anticipating a head and shoulders pattern to form. The onset of rain, reviving wheat pastures, caused a flurry of activity that pushed the index to a new high. At what cost continues to be the question as there appears little to no margin.
Update on Head & Shoulders pattern in the cattle market.
Feeder Cattle:
The question to myself is, was I a little wrong and missed what may be the 5th and final wave, or am I a lot wrong and there are dollars higher to go. Of course I can hear a multitude yelling, "It's going higher". As I know it can, it is just whether it will.
Hogs:
Hogs were lower with the index down $.02 @ $83.90. I expect the lean hog index to decline to approximately $75.00.
Corn:
Corn was a tad firmer this morning. There will be little to no cash trading done until the start of the year. Cattle feeders, owning the most expensive inventory in history, with pounds to go before finished, are urged to own the $4.50 July call options in an attempt to manage input costs by turning variable costs into fixed.
Energy:
Energy ended the day soft. I expect energy to continue to trade higher with last weeks higher close believed a reversal. Although getting off to a slow start, I don't think anyone wants the higher fuel bills.
Bonds:
Bonds continue to push lower. It appears that bonds are resuming their down trend with the US dollar resuming its up trend. With this the last full week of the year, I don't expect much to take place until after the first week of January.
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