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Live Cattle Futures Report for the week of 10/24/14 via Blue Reef Agri-Marketing

Wide daily trading ranges in Live Cattle suggest the market is getting tired and looking for new information to continue the sharp incline it’s experienced over the last 2 months. December and February worked into new highs twice last week but failed to maintain their gains. Even $5+ higher cash trade was only enough to excite the market but not give the confidence to hold. Technically the market has not changed the long term upward rotation. However, the market is in a situation of how steep, how long can we continue the short term curve. With a violation of the short term trend, breaks can be quick and potentially deep. Supplies of Fed cattle are expected to stay tight through the balance of 2014. With this market tone will still be driven by the large managed money positions.

The USDA released their October cattle on feed report Friday afternoon. Overall this again was in line with average trade estimates.

% of Last year

USDA    Trade Est

Cattle on Feed – Oct 1                     99.5%      99.7%

Placements during Sep                    101%      101.4%

Marketing’s during Sep                    99.5%      99.2%

This is intended for informational purposes only. Trading may not be suitable for all investors and may involve substantial risk of loss. You should fully understand those risks prior to trading. Past financial results are not necessarily indicative of future performance.  If you would like additional market advice please contact:

Blue Reef Agri-Marketing, Inc

www.Bluereefinc.com

309-550-7213

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Live Cattle Futures Report for the week of 10/3/14 via Blue Reef Agri-Marketing

Cash traded late in the day Friday with light volume. Texas traded $162 and Kansas $160-162. Nebraska reported sales of $250-252 Hot Weight. The packers then raised the bids late in the day to $163 and were still unable to find enough sellers to fill their needs. There is much discussion in the trade about poor packer margins and their ability to maintain slaughter. Many believe that we may see the closing of another plant or at least see a long term shortening of hours. Futures posted good gains last week with December up $3.775. Interesting to note that majority of the futures buying last week came from the commercial side and not the funds as many had expected. As of this morning Live Cattle Futures are posting modest gains but are facing strong resistance as they try to work higher. The futures will closely watch the cash trade this week, as it is expected the packer will need to come to the market vs using up all their contract cattle.

10-6-14

This is intended for informational purposes only. Trading may not be suitable for all investors and may involve substantial risk of loss. You should fully understand those risks prior to trading. Past financial results are not necessarily indicative of future performance.  If you would like additional market advice please contact:

Blue Reef Agri-Marketing, Inc

www.Bluereefinc.com

309-550-7213

bluereef_logo.png