Feeder Cattle: Hedging Opportunity - - - Canola Defies Gravity - - - Tips Managing a Hedge Program - - - Cocoa Meltdown

The cattle board had a terrific week . . . . Feeder cattle futures exploded higher breaking heavy resistance lines. Is this the beginning of another leg higher technically? And packers continue to pay-up for fat cattle, but futures gains are outpacing. Cattle basis levels are weakening.

Packers have been in a continual struggle with processing margins in-the-red. And will the fundamentals of higher-than-expected placements at the feedlot level eventually take the board down. This is a watch. Note: Recent USDA Cattle on Feed report has been viewed neutral to slightly bearish.

And there is this major outside influence called the stock market. This could be quite a volatile week ahead for equity markets. Equities are no longer on a one-way street higher. In fact, the majority of stocks are now in-a-downtrend. Can the Magnificent Seven (7) continue to hold the market glue together.

The U.S. soy complex stumbled last week . . . . The U.S. dollar remains on-a-tear while Brazil’s soybean production estimates swell. Yet, canola has stood-its-ground. Export worries for soybean producers, but impressive persistent strength across ICE canola futures . . . .

Lets take a look at live and feeder cattle charts. May canola, where are the lines of support and resistance now? Soymeal remains in a downtrend to-the-joy of hog producers. Will the hog rally continue?

Lets have a look at the ‘Cash Market Snapshot’. What are cash price trends right now?

Finally, a look at the Cdn dollar. The trend is down, but technically . . . oversold. Could a Cdn government leadership change trigger a recovery in the loonie?

Subscribe to Read-On / Listen-On . . . . Errol’s Commodity Wire is 100% reader-supported only.