Even with the S&P 500 dropping as much as it has over the last 3 trading sessions, live cattle has impressively been holding onto last week’s large gains. The fundamentals are very strong in this market due to a positive tilt in the cold storage report and along with the short-term cash market, fundamental news remains positive. The monthly cold storage report stated that September 30th beef stocks were at 425.6 million lbs, which was down 2% from August. This might not seem like a big percentage number, but just a reminder that cold storage stocks usually increase by 2% for the month, which is considered bullish.
If we look at the December live cattle daily chart, you’ll see that it has still held onto about half of last week’s gains while most commodity markets have pulled back much more aggressively. Also, I have highlighted below on my daily chart that December live cattle is still in an uptrend, which was started back on September 27th. If you would like to know more about live cattle, please contact me at 312.373.5316.
Dec. '12 Live Cattle Daily Candlestick Chart
Series 3 Licensed
Senior Commodities Broker
Nick DeGeorge began his financial career in the mortgage/ banking industry. After a successful seven year career, he had an opportunity of a life time to trade for one of the larger proprietary day trading firms at the Chicago Board of Trade. While there, he specialized in trading energy (mostly crude oil), metals, and E-mini S&P 500. After two years of being a proprietary trader, Nick became a Senior Commodities Broker at MF Global and worked for the top Commodity Trading Advisor at the firm. W.... Read More
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