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marketeye
Veteran Advisor

Re: From the floor March 2

One cattle trader says that you are right about Apr Cattle. "The chart looks like a triple top and that is not bullish at all. After taking out support levels yesterday and trading lower today Apr futures look to be heading toward 109 before they hit some support."

He adds, "A lot of guys are getting in to June contracts. Open Interest has slipped recently in Apr and grown in June. I don't think the market is totally running out of steam but it may need a short break to refill the woodpile. Continued slowing at the retail meat counter and big breaks in boxed beef values should be monitored as signs of running out of steam."


Hope this helps,


Mike


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marketeye
Veteran Advisor

Re: From the floor March 2

Wednesday's soybean market was trading harvest delays in Brazil. In Mato Grosso, heavy rains are causing short harvest windows and long truck lines at the port. My northeast Brazil contact just sent me this note:

"It’s been raining almost every day, the weather is the same as when you were here. I’ve only heard that some farmers around Uruçuí city (northeast Brazil) were harvesting, but only a few hectares each. Harvesting in Piaui state will increase at the end of March, lasting till May 15th."

Mike

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marketeye
Veteran Advisor

Re: From the floor March 2

GoredHusker,


A cattle trader says, "The cattle market is consolidating.  The other important thing to remember is that we are entering the period we call the "Goldman Roll" which is when fund long positions get rolled from the front month to the back.  This has been keeping the cattle from making new highs in the recent few weeks.  I would hesitate to be too short cattle for now because as long as the dollar stays low, exports stay high, and corn does not break, it sure seems like we have a lot more room to the upside."


Hope this helps you,


Mike 

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dapper7
Senior Contributor

Re: From the floor March 2

i had always heard triple tops were made to be broken?

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dafeeder
Veteran Contributor

Re: From the floor March 2

Double Tops hold, Triple Tops fold.

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