Pure Hedge - Livestock and Grain
10/13/26
The Sugar #11 Market is still moving higher, and today the March'27 contract traded up to 21.18, just six cents from the contract high at 21.24. I continued to buy more calls in the Option Market today and still feel the Sugar #11 could trade 30.00 or higher. The Grains all settled lower today, after the Soybean Oil took another dive. I am sticking with it and bought more Calls today. It was just a few ticks away from a level I like, and thought it was about to explode higher, and then the EPA had a press conference about the biofuel mandates, and the lack of a real answer panicked the market and it sank. December'26 Soybean Oil traded as high as 70.08 today, up 1.45 on the day, and then broke 2.34 down to 67.74. The December'26 contract settled today 0.28 above the low at 68.02. I still believe this market will rally again, and the payoff will be worth the pain, but we will have to wait until December 4th for clarity on the biofuel mandate. (There is a copied explanation below). The global El Nino is enough to send the Soybean Oil higher on its own, and it could get more help from the Crude Oil again. I expect the Crude Oil to continue to trade higher as well. The midterm elections are Tuesday November 3rd, and there is a very good chance all hell is going to break loose in the Middle East, that night or the day after, sending the Crude much higher then, and leading up to it. This would also be bullish for the Sugar #11 contract. The Cattle Markets could not pick a direction today and settled near unchanged. I don't expect much to happen until a cash trade has been established this week. I did send out a few Bullish Feeder Trades today, let me know if you would like to see them. If you have any questions, please give me a call. Have a great night.
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Here is a copied explanation about the biofuel mandates below:
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I bought more Soybean Oil all the way down and am staying long.
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BELOW IS A DIRECT LINK TO FILL OUT ACCOUNT PAPERWORK - PLEASE CALL ME IF YOU HAVE ANY QUESTIONS.
https://portal2.straitsfinancial.com/Identity/Account/Register?brokerId=978
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GOD BLESS AMERICA
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Give me a call if you have any questions.
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Bill Allen
Vice President
Pure Hedge Division
Direct: 312-957-8079
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