wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
375 W. Madison, Ste. 2607, Chicago, Illinois
(November 20, 1997) CATTLE: Cattle futures continued to be fixed in the sideways range it has maintained between $66.00 to $68.00 again this week. The cash market was $1.00 lower as active trade took place at $67.00 which helped packers gain a little more edge margin wise. The boxed beef markets were mixed to start the week, but a firming tone prevailed by week's end. The retailers were a bit more aggressive as it seemed they were starting to purchase needs for after the Thanksgiving holiday which is usually a strong beef time. Overall, market internals are mixed as the weaker cash market seems to keep a cap on price advances in the futures. The one wild card for the market could be decent demand in December which could possibly help ease and expected rise in production. The latest Cattle on Feed report bore no surprises as all of the figures were basically in line with early estimates. It showed that on-feed numbers remain large, but with strong marketings expected to continue, the move through large supplies should not pressure the market all that much. Technically, December live cattle are in a downtrend, the trend would turn back up on a close above $67.95.
FUTURES STRATEGY–Long LCZ from $66.50. Maintain a protective sell stop close only to $65.05. Add a second unit at $68.12 stop.
OPTION STRATEGY–Short LCZ $66.00 puts at $1.10. Maintain a protective buy stop at $2.25.
Tony Montini
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com