2-Minute Drill ⏱️ Lean Hogs & Corn

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2-Minute Drill with Matt Bresnahan

Grain markets were under a bit of pressure today. December corn led the way lower, settling at 480 3/4, down 6 cents on the day. November soybeans managed to fill the gap from Monday, by settling 5 ¾ lower at 1386 ¾. Fortunately, soybeans were able to stage a bit of a late-session come back trading 6 ¼ cents off of its intraday low. September wheat was the lone component of the grain complex to trade higher on the day, trading 7 cents higher to settle at 576 ¾ 

Both of the cattle contracts showed a bit of weakness today, with October Live cattle down a buck 42, settling at 180.050. October Feeder cattle was down a buck 52 settling at 255.225. October lean hogs really stole the show today – up 2.87 on the session, settling at 83.60

October Lean Hogs 

  • It’s been a wild ride in the October Lean Hog contract over the past 3 months. 
  • We’ve made a formidable comeback after bottoming out on May 25th. 
  • Today’s candle represents a Bullish Engulfing Pattern.
    • What the heck is that? As you can see, today’s opening price was lower than yesterday’s close. The length of the candle’s body also surpassed yesterday’s high price – engulfing the previous day’s candle, to ultimately close higher than any of the previous day’s trading range. 
  • This indicates a potential trend reversal. 
  • Seasonally, that checks out. 
  • Looking at the seasonal chart here, we can see that the October Lean Hog contract has trended higher each of the 5, 10, and 15 year periods. 

December Corn

  • Corn bulls are going to be happy to turn the page on the month of August. 
  • The contract tested 500 on 8 separate occasions in August, each time failing to close above it. 
  • There is good news for bulls:
    • We’ve remained mostly range-bound. The month of August had only a 40 cent trading range, compared to a 91 cent trading range last month.Typically, price consolidation leads to breakouts 
    • Seasonally, the December corn contract bottoms out in Mid-september before ultimately turning higher. So there’s hope. 

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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points that can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program that cannot be fully accounted for in the preparation of hypothetical performance results all of which can adversely affect actual trading results.

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This message and its content is intended only for the person or entity to which it is addressed and should not be shared with additional parties. Seasonal tendencies are a composite of some of the most consistent commodity futures seasonals that have occurred in the past several years. There are usually underlying, fundamental circumstances that occur annually that tend to cause the futures markets to react in similar directional manner during a certain calendar year even if a seasonal tendency occurs in the futures, it may not result in a profitable transaction as fees and the timing of the entry and liquidation may impact on the results. No representation is being made that any account has in the past, or will in the futures, achieve profits using these recommendations. No representation is being made that price patterns will recur in the future.

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