Hog Production Expands in China
LIVESTOCK AM OUTLOOK
Weights are beginning to come down. Average steer weights on the 5 day average dropped 19 pounds. If the drop continues, it will at least put less beef on the market especially for beef in big demand trimmings and grindings.
Another positive factor for the cattle market is that Select cattle that were bunched up a month ago are cleaned up.
2021 is the Year of the OX in China, but in reality it will be the year of the butcher hog when China is in its largest expansions in hog production. By mid-2021 plans for expansion are to have 50% more hogs on feed than pre-African Swine Fever.
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.