Commodity Markets (grains, livestock, metals, energies, etc) are on the Move to Start the Week!

Volatility in commodities has been on the rise over the last week and many traders see that as opportunity as we inch closer to the summer months.

Transcript:

Mr. Oliver Sloup he’s with blue and futures and Chicago. Oliver, thanks for being on the show.
Thank you for having me. It is certainly a better day for the grain markets and how we finished last week last week. I think there was maybe, you know, some risk of some technical damage being done but regaining some ground here in today’s trade, which is great to see. For that July corn contract. I think the bulls really want to see a break and close back above 460. And potentially that spurs us back to the highs but I was talking with Mr. Swift last week. This is a time of year where you get those day to day gyrations. So the volatility is completely normal. Like in the first quarter, you kind of get lulled to sleep thinking these 510 cent ranges are normal. This is springtime and we’re going into summer where the weather you know, patterns are changing constantly and that volatility upticks. And you can see that illustrated on CME Group C vol, which is C vol.com, the corn volatility index at the highs of the year. And I expect it to climb from here. So they say volatility presents opportunities. So I’m excited these markets are finally moving again. Are you are you
recommending straddles strangles What are you doing to take advantage of it?
Well, everybody’s a little bit different. So I can’t just lay out an outright recommendation that covers all folks right here. Producers, I think are probably going to be a little bit more proactive on playing defense, especially with how we finished last year when we do go retest those lows eventually later in the year, you’re going to want to make sure that you’re predicted but from a speculative position commodities as a whole are really showing some great signs of life. Looking at China it looks like their economy is starting to come back to life a little bit that could spur some momentum and maybe some some fun to action here going forward into the back half of the year which is nice to see I mean look at the precious metals there are making gold making all time highs silver breaking out testing some some levels we haven’t seen for some time and then a loyal just knocking on the door of $80. So a lot going on in commodity land and it’s great to see all
right, so right there, we’re gonna go away we’re gonna pay some bills. We’re gonna go back and talk more Oliver Sloup Blue Line futures in Chicago. We’ll be right back after this.
Let’s bring in an expert that’s gonna be Oliver Sloup Blue Line futures. Oliver, thanks for sticking around. What jumps out to you when we take a look at those livestock prices.
Last week’s close is very impressive. For live cattle specifically, over the last six weeks now we’ve really been kind of in a holding pattern, we saw the headlines of the avian flu and the outside markets were a little rocky. And we were kind of in the camp that that would kind of keep fun money on the sidelines. And that was the case for the last six weeks looking at the commitment of traders report. But now we’re starting to see the momentum shift. And seasonally This is a fairly friendly time of year for live cattle from the end of May into July 4, obviously grilling season there. So there are some nice tail winds on that aspect. And the outside markets have stabilized as well. And you’ll see a firm cash market. So the momentum has shifted, we broke out above the 200 day moving average last week for June live cattle. That was the first time getting out above there since March 25, which was also the breakdown point from that decline. So some good signs of life here and the live cattle market. Hopefully it can continue.
How high can you think they can go? I mean, at some point, they do kind of start to run out of steam because the consumer is starting to run out of steam. What do you think?
Yeah, there are some cracks in the background, that’s for sure. And it’s kind of an interesting spot the markets and because bad news is good news for the outside market, but maybe not necessarily for demand driven products like beef, and eventually high prices do care, high prices. But you know, going into grilling season, I wouldn’t be surprised to see us maybe go retest those highs that we saw. Not all that long ago. Yeah,
I mean, it’d be it’s definitely gonna be interesting. And then obviously, a lot of folks I mean, maybe not mean cluded. But there are some people that do look at say, the stock market and how that might affect the fund flows that way. And then if you have a view on the stock market, whether it may be bullish or bearish that could also kind of feed through into some of these prices. And I just think that there are folks out there that believe least wheat on my show, they’ve talked about things being a little precarious out there. Does that kind of bleed over into the cattle market? Maybe with things being a little precarious there as well?
Yeah, I think so. Usually when you see you know, big market sell offs in the outside markets that correlates to the cattle market, but you know, all all things look pretty good right now and I had about three or four steaks over the weekend. So I’m doing my part.
Well, I’m excited I’m embarrassed to say that I’m you got me beat by that. That’s pretty good. Pretty good stuff. And so are you seeing the prices? I mean, there was a time you go to the you know, you’re the butchers and the greengrocer and you can see that there’s a way better price report than beef. Is that still the same?
Yeah, that’s the beef is expensive, no doubt about it. I shop local and have a local butcher guy that I buy my meat from and the prices have got to a point where even I started to pull back a little We’ll bid but like I said, it’s grilling season. So a lot of that maybe gets pushed back to the back of the mind, but we’ll just see how it goes. Right now the technical landscape looks good and the funds have powder to add.
I don’t know if you’re like me there or if it gets that tight, just get rid of the salad and keep eating the beef. That’s what I would say. All right, brother. Thanks for being on Oliver Sloup Blue Line futures coming to us from Chicago.