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Dec Cattle/Hog Spread New High

MORNING LIVESTOCK FUTURES OUTLOOK

LIVE CATTLE

Monday, the December Live Cattle/December Lean Hog spread made a new contract high.  Tuesday, the spread reversed off the high.  Volume trade on Live Cattle and Lean Hogs was close to the same throughout the day right up to the post trade.  It is far too early to say if Tuesday were spreaders profit taking or simply quick profit taking.

Cattle feeders are getting a break on feed costs. Grain prices are down and in areas where wheat is available feeding wheat is helping reduce costs. Tuesday the December wheat/December corn spread  settled below $1.00.

LEAN HOGS

Packers are pleased to see cash hog prices going down and pork prices going up. The CME Pork Index has widened out to $11.32 over the CME Lean Hog Index.  Packers will try to push more hogs to slaughter especially as more pork isn’t putting price pressure on the daily pork market.

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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.

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