Written Commentary
MORNING LIVESTOCK OUTLOOK
It is too early to tell if Live Cattle are going to move higher starting out a new month or was Wednesday when speculators took in shorts after moving futures down Tuesday wiping out the entire move higher back to October 2021.
Hogs moving faster to the upside versus pork is negative for the packer.
People are eating more pork. Compared to beef it is cheap. Compared to chicken it is competitive. At the beginning of the year ground pork products were up 20% from a year ago. Loins are competing at retail shelves to high end beef cuts and it is much cheaper. The USDA estimates pork consumption to be 1 more pound per person in 2022 essentially gaining on losses from beef.
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.
