Written Commentary
MORNING LIVESTOCK OUTLOOK
It is beginning to look like Choice boxed beef is turning back up. The Choice price Tuesday was $ 248.04 compared to the lower 5 day average at $246.35. When this happens, it is one of the first indicators. Secondly indicator is a lighter movement. This is becoming harder to use because daily beef movement is a small part of beef sales but when sales are light, it means the majority of beef is needed to fill previously contracted orders before beef can be offered on the daily market. Another indicator is how packers retained price throughout last week and even tacked on higher money for cash cattle Friday.
Hog kill and hog weights have been increasing. The price of pork has been dropping. Pork prices are dropping faster than the price of hogs. It is a combination for lower markets. Top it with slow demand for exported us pork and the drop on hogs is acceptable. Add in the reluctance of hog producers to sell hogs during august and the recent avalanche in hog prices is easier to see why it has happened.
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.
