We started this week with a $2.38 jump in choice boxed beef and a 25-cent gain in select. It is hard to say any new trends will be starting into the holidays but it is good news. Also of interest the stock market just cannot break those November lows put in a month ago. T he stock market is saying it has factored in the worst of the economy. Deferred live cattle futures are not though. We feel this poor demand time will be coming to an end soon and are bullish 2009 futures. We have also taken the first step in our bullish 2009 strategy by selling the April 84 put. When the market restarts the rally we will buy futures. Of note...Friday this page showed a buy order for Apr at 90.10 with a risk at 88.50. It was meant to be a 90.10 buy stop (buy only if a breakout happens). As both the entry and risk were much above Friday's close we assume you saw the trade a mistake and did not buy at the market. If it was not that obvious, we would have swallowed the mistake and assumed the trade. We apologize for the discrepancy...Rich Nelson
Cattle Technical Commentary: The short-term trend is up. This is the second week in a row of higher futures trade. Allendale's next projected major turn day for live cattle is December 30 and for feeders January 8.
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