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November 5, 2025
Both Cattle Contracts Limit Down Again
Feeders down 9.25 cents $(4625 per futures)
Live Cattle down 7.25 cents ($2900 per futures)
The Cattle Complex has been devastated during the past
few weeks, and while I personally remain short, and do think this collapse
has a LONG way to go, I cannot recommend entering new positions at current
levels. For one thing, with the limit down closes today, and pools of
contracts of traders attempting to sell, but could not, there is no telling
what tomorrow’s opening and ensuing trade will be…especially considering
that the daily limit will be expanded to 13.75 cents in Feeders and 10.25
in Live Cattle…Volatility is through the roof, making options prohibitively
expensive, and regarding new positions, I think it best to wait for some
sort of consolidation and/or upside retracement to either short futures or
buy puts…But make no mistake…I REMAIN SHORT and REMAIN BEARISH and FULLY
EXPECT TO SEE BOTH CONTRACTS GO DISATROUSLY LOWER OUT INTO EARLY NEXT
SPRING.
But I AM NOW
ABSOLUTELY BULLISH CORN, COTTON, WHEAT AND SOYBEANS…
Just for brevity, here’s the Soybean contract which
closed into new 1 year highs again today…and quite honestly, with this
background of a China deal having been made…AND the fact that the Supreme
Court may be cancelling this whole tariff thing, MY SENSE IS THAT SOYBEANS
COULD BE IN A TOTAL LIFT OFF MODE…And whether you use the 2&1 (which is
smart) or just buy them outright, I THINK THIS IS A GREAT, GREAT BET…AND
IMMEDIATELY SO.
The Big Picture…
Get in touch if you want to know more…
Thanks,
Bill
770-425-7241
866-578-1001
All
option prices in this newsletter include all fees and commissions. All
charts, unless otherwise noted, are by Aspen Graphics and CRB.
FUTURES
TRADING IS NOT FOR EVERYONE. THE RISK OF LOSS IN TRADING CAN BE
SUBSTANTIAL. THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE
FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS. THERE IS NO GUARANTEE YOUR TRADING EXPERIENCE
WILL BE SIMILAR TO PAST PERFORMANCE.
The author of this piece currently trades for his own
account and has a financial interest in the following derivative products
mentioned within: All of them
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