Summary
Highlights
Oliver Slopes discusses the concern over the hog market losing triple digits. He notes that lean hogs have been in a downtrend for the past two and a half months, but hopes for a seasonal low. Fund positioning shows net flat, well off record highs, and funds rarely go net short for extended periods. The July contract needs to get above 102-103 to attract more fund participation.
Oliver also looks at the cattle market, which is one month removed from contract highs. The cash market has pulled back, a trend hinted at by futures. He identifies 235-236 as a crucial support level for August live cattle, where a break could lead to further selling. For feeder cattle, funds are long only about 10,000 contracts, and the 200-day moving average at 346.20 in August feeder cattle is a key level bulls want to hold.
Regarding the energy markets, Oliver jokingly suggests that trading without watching headlines would require a good algorithm to read them, emphasizing the headline-driven nature of these markets.