A brief dive into Lumber, British Pound, Dollar Index, Feeder Cattle, and Coffee

Excerpts from the video (raw audio translation):

Markets in a minute today will be five markets in 5 minutes. I can take a little bit of a deeper dive in 5 markets that I think in my opinion had some interesting moves on the day. For today the five are going to be the Dollar Index, Coffee, Lumber, the British pound, and feeder cattle - so let's get to it.

Here we have the charts so let's look at the feeder cattle to start out with. First of all, the fat cattle have been well supported in the upper end of this range here and that provides incentives for feeders to be bought and feeders to be fattened. The jan feeder-cattle market established a range over the last five months or so anywhere from about 15360 down to 14380 give or take. We did have a test of that low about a month ago, had a bounce of about 50%, and then we had to retest which is normal and it is held. Today the market was up pretty good for feeder cattle - 250. There are a number of factors that can affect feeder cattle prices - such as the price of fat cattle down the road, the price of the inputs that being primarily corn, and then obviously things like weather…  but so far so good.

The next one on the radar for today is the dollar Index. The March dollar Index right here eeked a new high at 9699, the recent recent high was 9693 … so you know the market is basically showing that it has the ability to push higher for the dollar. If you believe interest rates determine currency flows the dollar would be a on your radar because the FED has been moving rates higher and appears to be expected to make one more move this month. The strong dollar may at some point put a damper on Commodities overall, as obviously this makes our stuff more expensive to the rest of the world.

The next Market would be coffee. This Market's been on a good tear to the downside. Just back in September sitting at a $1.00 a pound going up to a $1.29ish or so …  so about a 29% gain and prices and then basically taking all that right on back. With coffee the specs have been on the short side of the equation -- so there's been ample power to sell this from that large and small speculators. I think the latest commitment of Traders had the net short position for non-commercial non-reportable traders combined at about 30,500 contracts going into December 4th,  so it was about 8,200 contracts added to the short spec position. Vietnam’s Harvest looks pretty good @ about 70% complete or so. Now there are some talks about some decrease in certain areas in terms of production but I don't think it's enough to offset the weakness in this market at the moment.

The next Market will be the lumber - which I talked about the other day. So Lumber right now January contract down $0.60. It made a new swing low today. It had a gap back on October 31 that is filled, with back and fill action would put this to about 30790. Today it went out around 31600. So that's roughly about five-six bucks lower and continue to move into a new swing low.

And then the British pound … moving over to the currencies again. Continued brexit woes as well as some scheduled traditional economic numbers that came out that necessarily didn't turn the tide on this particular move to the downside. So we did eek out a new low in the British pound getting down to 12554 today's low,  yesterday's low was 12572 … so we broke it by about 18 points or so.

If anybody has any questions comments or anything of Interest based on these observations or would like to plan some strategies feel free to contact me,  until then we'll leave it there.

Welcome to 4 markets 4 minutes where we give about a minute to markets that have some kind of noteworthy move today. Today's markets are going to be the British pound, Dairy - that being the class 3 milk,  and the interest rates, and lumber.