Has The Back of the Cattle Market Been Broken?

Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729

Follow me on twitter@commodityinsite

Below are my early morning cattle comments I broadcast to those that subscribe to my twice a day newsletter, Commodity Insite and to my subscribers.

--------------------------------------------------------

LIVESTOCK COMPLEX

"Cattle ended 10 to 15 higher yesterday with feeders up 25 points. Hog futures were 100 to 120 higher and the strong link in the critter complex. All in all, it was a solid start in a new week. But I was less than impressed with cattle and not surprised how the hog market performed.

There is mixed trade everywhere this morning with a soft tone. I would expect the critters to do the same. I look for cattle futures to peak out this week and no later than early next. I look for June cattle to remain locked in the $118 to $120 level. Hog prices that did quite well yesterday are trying to bottom. But after hitting a 3 to 4 month low on Friday, they need to bottom!

The most interesting item yesterday in the cattle market was the total absence of fund buying. The funds simply backed and refused to chase strength. That may change today but then, maybe they continue to shy from buying with prices at such elevated levels."

--------------------------------------------------------------------------------------------------------------------


Today, cattle futures in the first 29 minutes endured, suffered through and put up with a 475 point trading range. After opening steady, prices fell nearly limit down and promptly rallied over 200 points. It was white knuckle 29 minutes.


Now, as I type furiously away, live cattle are off 240 points with feeders down 340 points. The market is a wreck and it certainly lends legitimacy to my observations this morning that is was suspect the funds were not buying cattle yesterday and were noticeably absent from the long side of the ledger.

Should cattle futures end here or lower, the back of the market may have been broken. Only time will tell.


The time now is 10:29 a.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.


DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.


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.