Morning Livestock Report, 01/15/2016

Friday, January 15, 2016

The cattle markets opened weak from the start yesterday, sliding through key 40 day moving averages in both Feb and April live cattle futures within the first half hour of the session and touching off sell stops. We did see a widespread cash cattle trade develop midday at mostly $208-210 dressed in the North and $134 live in the South, up $2 versus last week and in sharp contrast to cascading futures, which closed $1.50+ lower and then another $0.80 worth of losses through the afternoon hours. The move has the look of a technical flush and chart traders now eye the giant chart gap left back on Dec 21, which resides from $127.17 to $130.30 in April live cattle. The fact that futures couldn’t rally yesterday on the appearance of positive cash cattle news raises some red flags and anxiety levels. And this morning, we’re again facing more problems from much weaker global equity and commodity markets. Look for a lower start again this morning.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

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