Written Commentary
Morning Livestock Outlook
Too many traders watching October/December hog spread. It is now time to concentrate on December/February or spreads into June 2021. Anything can happen as October closes. The world has a lot of pork. China pork prices dropping. Buying has been to refill coolers. Next big need for China will be late January to February.
Packers are buying too many Select Cattle mixed with Choice and having too many big cattle Choice and Select. They are getting big cattle that won’t finish Choice that were taken off feed in March and April and no matter how hard they are fed, they won’t grade Choice.
Wednesday in the Midwest loads of cattle with 80% or more Choice cattle sold for $109.00 with feedlots holding for $110.00. But loads with 65% Choice to Select selling for $108.00.
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.
