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Friday, June 09, 2017 7:57:13 AM
Live cattle poised for further gains
By Almanac Trader | June 8, 2017
Live Cattle prices typically hit a seasonal low in mid- to late June and then begin to rise before the school season begins as federal government subsidies for school lunch programs kick in for beef purchases. Consumption continues to increase through the winter and holiday season, generally keeping cattle futures prices higher through mid-February.
Our top longer-term seasonal play for live cattle is to go long the April 2018 contract near the usual June low on or about June 20 and hold it for 160 days until early February. Over the past 47 years this trade has been positive 31 times for a success rate of 66.0%. After failing to deliver gains in 2015, this trade returned to profitability last year with a modest gain as live cattle did not reach a bottom until October. More recently, live cattle have been exhibiting strength during its usually weak period. This is typically a bullish sign and when the weaker U.S. dollar is considered, the prospects for another successful trade are further improved. Not to mention the potential effects of China importing U.S. beef later this year.
http://jeffhirsch.tumblr.com/post/161595143268/live-cattle-poised-for-further-gains
• DiscoverGold
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By Almanac Trader | June 8, 2017
Live Cattle prices typically hit a seasonal low in mid- to late June and then begin to rise before the school season begins as federal government subsidies for school lunch programs kick in for beef purchases. Consumption continues to increase through the winter and holiday season, generally keeping cattle futures prices higher through mid-February.
Our top longer-term seasonal play for live cattle is to go long the April 2018 contract near the usual June low on or about June 20 and hold it for 160 days until early February. Over the past 47 years this trade has been positive 31 times for a success rate of 66.0%. After failing to deliver gains in 2015, this trade returned to profitability last year with a modest gain as live cattle did not reach a bottom until October. More recently, live cattle have been exhibiting strength during its usually weak period. This is typically a bullish sign and when the weaker U.S. dollar is considered, the prospects for another successful trade are further improved. Not to mention the potential effects of China importing U.S. beef later this year.
http://jeffhirsch.tumblr.com/post/161595143268/live-cattle-poised-for-further-gains
• DiscoverGold
Click on "In reply to", for Authors past commentaries
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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