Read Larry Connors' blog – Short Term Trading Strategies
Live cattle, feeder cattle and pork bellies landed in bearish territory.
Wednesday's pork future's rally spilled over into Friday's open, fueled by continued pork cutout price strength. Also, cash hog prices came in no worse than steady which further inspired market bulls.
Spot-December and nearby-February also ignited buy stops after both contracts cleared their respective Oct. 15 price resistance barriers. Subsequent upward momentum carried December and February to 6 1/2-week highs.
Meanwhile, far hog month speculative longs stood their ground despite shaky Chicago Board of Trade corn futures.
Hog buyers and floor traders anticipate steady-to-firm cash hog prices on Monday in the wake of a Saturday kill estimated at over 300,000 head.
However, bearish traders argue that cash hog prices and pork cutouts might take a hit sometime next week because of this week's holiday-shortened workweek that, they said, may have backed hogs on farms.
Pork bellies closed lower on profit taking, February's overbought chart condition and light far-month speculative selling.
December hogs closed 82 points higher at 59.50 cents a pound, and February closed 125 points higher at 67.02 cents.
February pork bellies ended 117 points lower at 92.32 cents, and May ended 50 points lower on 91.50 cents.
Cattle Complex
CME live cattle finished flat to lower on profit taking and spreaders who sold February and bought December and April. Also, low-priced CBOT corn weighed on deferred cattle contracts.
Beef futures firmed at first on cash cattle returns for this week that came in stronger than expected.
Cash-basis fed cattle on Wednesday brought $90 per hundredweight, compared with $87 to $88.50 last week.
Spot-December and nearby-February also triggered buy stops. Both contracts were supported by their respective 10-day moving averages. And, the U.S. stock market at times gave live cattle futures positive traction.
However, selling into upswings nibbled away at initial live cattle advances. December and February later tripped stops on the way down.
And, lethargic wholesale beef demand was too much for some bullish spot-month traders to overlook.
The U.S. Department of Agriculture's midday Friday boxed beef data showed choice cuts down $1.36 per hundredweight and select items dropped $0.84.
Without cash direction, cattle future's players on Monday may turn to U.S. financial markets for leadership.
Feeder cattle futures settled lower on profit taking, board premiums to CME's feeder cattle index and live cattle's eventual lapse.
December live cattle closed down 5 points at 87.37 cents a pound, and February finished 50 points lower at 87.65 cents.
January feeder cattle ended 50 points lower at 91.70 cents, and March closed 70 points lower at 92.22 cents.
-By Theopolis Waters; Dow Jones Newswires; 312-341-5778; theopolis.waters@dowjones.com
(END) Dow Jones Newswires
11-28-08 1415ET
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
