wmeubank@ocp.kcmo.com
COMMODITY REVIEW AND OUTLOOK
195 Route 6A, Suite 6, Orleans, Massachusetts
(December 18, 1997) CATTLE: Friday afternoon there will be a Cattle on Feed report. The report is widely viewed as likely to be bearish, but judging from recent market action, may be priced in already. Be alert for a reversal after the report if it is negative. Traders should decide whether or not they wish to be in for the report. Short-covering prior to the report and weather concerns sent the market sharply higher. There have been no deliveries on the December cattle as of yet. A winter storm system is moving into the Plains starting Friday.
RESISTANCE–Resistance basis February lies near 6725, 6760, 6810, 6850, 6890, 6930.
SUPPORT–Support basis February lies near 6610, 6520, 6475, 6350- 6360.
RECOMMENDATION–Conservative traders should stay on the sidelines. Aggressive traders buy 25-50 point breaks with 50-100 point stops. Very aggressive traders might also consider selling February cattle near 6725 with stops of 50-100 points. Look for a break back to the upper 6600's. Long-term option traders might buy April calls.
M. Steven Morgan
Hogs
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Cattle
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