Written Commentary
MORNING LIVESTOCK OUTLOOK
Big price moves continue on the daily beef market. Early sales on Tuesday Choice primals were up $7.09, Choice chucks gained $4.96, Choice rounds were up $4.17 and Choice loins $4.94. Briskets and flanks were up a bit with the only primal lower was Choice plates down $5.11. The cutout gained $3.95 which is a substantial move especially with the cutout climbing day after day. The spread between Choice and Select is $34.47 and Choice has been steadily widening to Select.
Tuesday, the pork carcass was down on all primal cuts. Loins on the 5 day average look to break $90.00 and now with porktober just about over, it doesn’t appear that buyers are booking loins for the upcoming holidays. Yesterday, was a good example when there is a larger movement of product, prices fall. Although, 416 loads isn’t a large percentage of the total kill, when there is a large movement, it usually happens when packers have filled contract orders and have more meat they need to sell on the daily cash market and it could mean sales yesterday and over 14 days.
Learn more about Chris Lehner 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.
