Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Trade volume was mediocre yesterday. Spreading was the majority of the trade. Live cattle are bear spread, but there may have been a reversal with a key reversal on the February live cattle/April live cattle spread.
The demand for leaner beef is strong as select beef narrows the difference between choice and select. Consumers want beef but they want cheaper beef at this time in November.
LEAN HOG COMPLEX
The CME Pork Carcass Index to the CME Lean Hog Index is widening favoring pork and the negotiated pork price has started to gain. Pork gaining on hogs is positive for packers. Also lean hogs are gaining on live cattle which means lean hog longs are entering the market. Sales of trimmings are also increasing.
Load movement on the daily pork carcass has also increased. Combined with an increase in slaughter this is showing some positive indicators.
Interested in more futures markets? Explore our Market Dashboards 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.
