wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W Madison, Ste 2607, Chicago, Illinois
(August 14, 1997) CATTLE: Market activity during the last week in the cattle complex was mixed, but a firm tone prevailed late as the market found support from a firm cash trade. The cash cattle trade during the past week was very active as the packers were fairly aggressive buying the showlists in most regions. Cash trade place at $65.00 to $66.00 which was steady to $1.00 higher from the previous week. The boxed beef market was again weak, but demand remains strong prompting ideas that the bottom in prices is just around the corner. Retailers seem to be moving product as they continue to be strong purchasers which is keeping the pipeline fairly clean. Overall, market internals remain mixed, but look for better things to come due in the coming weeks. Demand should continue to remain at its rapid pace and if that is coupled with the fact that empty pens are starting to show up in several feedlots in the cattle-feeding belt it should give the market strong support in the coming weeks. Technically, October live cattle are in a uptrend; the trend would turn down on a close below $68.97.
FUTURES STRATEGY–Long LCV at $71.12; Long second unit of LCV at $69.80; maintain a protective sell stop close only at $68.05 on both units.
OPTION STRATEGY–Sell LCZ $70.00 puts at $.90 or better; if filled enter a protective buy stop at $1.90.
Tony Montini
Added to the WWW 08-15-97
Last updated on 08-15-97
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