Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Live cattle trade volume was active Wednesday. Early trading shorts were blowing out and later, longs took profits. Throughout the day traders were bull spreading as well as taking profits on live cattle/lean hog spreads.
Demand for beef normally increases before holidays, but how much will it drop after Labor Day? There are 2% less cattle on feed, and 6% less cattle were placed. There will be fewer cattle. Beef prices during September will depend on the amount of beef that has been previously contracted and the cattle available to meet contracts.
PORK COMPLEX
If analysts are correct and pork consumption increases, the bull spread between October and December should widen and lean hogs should gain on live cattle. Live cattle/lean hog spreads are currently at a record extremely wide spreads.
>>Read full report here
Interested in more futures markets? Explore our Market Dashboards here
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
