A lot of markets stunk Thursday, with the Energies sector led by a solid selloff in Crude Oil (both WTI and Brent).
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Out in the Barn, aka the Livestock sectors, both cattle markets closed deep in the red.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. In the Grains, heavy selling was seen in the Oilseeds sub-sector, led by a limit-down move in soybean oil.
Session Summary: Imagine being a contestant on the television show Jeopardy, back in the day when the late, great Alex Trebek was the host, and one of the categories was Things That Stink. We can certainly use what we see in Thursday’s markets to provide correct answers in the form of questions. Let’s begin. “I’ll take Things that Stink for $200 Alex”, we’d say. Mr. Trebek would respond with, “You’ll know its nearby when you smell rotten eggs.” Our answer would of course be, “What is Crude Oil?” Correct, WTI (CLM25) slid as much as $2.68 overnight but had cut its loss to only $1.53 (2.4%) as of this writing. We would follow with, “The same category for $400, please.” Alex would say, “They bring to mind the phrase, ‘Blood and guts for miles around, and me without a spoon’[i].” We would answer with, “What are the Cattle markets?” Correct again. Both live and feeder cattle had a slaughterhouse stench to them Thursday with contracts across the board posting solid double-digit losses. Leading the way was August feeders (GFQ25), falling as much as $6.875 (2.3%) before closing “only” $6.15 lower. However, it’s interesting to note both live and feeder markets saw some commercial support late in the day, as indicated by futures spreads. Additionally, lean hogs erased early losses and closed with triple-digit gains.
