News

Sneak peek at March hedge fund and managed futures returns from Kettera Hydra Platform Investor Letter.
Cattle futures have been mostly untradable for the past month though yesterday’s session provided some great intraday opportunities.
We got through what has been the hardest day of each week for the past several weeks, Monday. We got a string of bad news over the weekend with regards to reduced capacity at a handful of packing plants through the Country.
Covid-19 concerns continue to move the livestock futures market from bad to worse
Cattle futures turned lower and didn’t let up, finishing the day locked at the expanded limit. Live cattle remain in expanded limits, 4.50. Feeder cattle are in expanded limits 6.75. Cash cattle started to pick up yesterday, the bulk coming in near 112.
June lean hogs made new lows on Friday as trend-following funds continue to press the pedal to the metal. There’s not a clear indication of how things will open yet.
We do believe there is more room to the upside on the front-month live cattle contracts, but we think it may not be sustainable for another week.
Expect the volatility in the outside markets to continue to be the leader for cattle. Overtime, volatility will come back out and things will stabilize. When that happens, we think some of the best opportunities will be in cattle futures.
Cash cattle trade started to pick up yesterday, the bulk of it coming in near 113 in KS & TX. The market managed to rally on the back of this news as market participants seemed relieved that it wasn’t lower.
Live cattle futures were nearly limit down on Friday and nearly limit up on Monday, as mentioned in yesterday’s report and in our interview with RFD-TV, the outside markets will be the driver of price action in the near term.