Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOG COMPLEX
Drop in cash prices yesterday. Sellers increasing more pork loads on negotiated prices indicating fewer contracted pork sales which is negative.
Volume on lean hogs was moderate with futures pushing into new lows. Spread traders, December through April 2027 were bear spreading. The last hogs and pigs report should have traders bull spreading. The problem with hogs is pork. Consumers aren’t eating loins or hams. Like beef, consumers are eating pork products like sausages, trimmings and ground pork but not the top primals.
LIVE CATTLE COMPLEX
What is going to encourage cow/calf producers to increase breeding and retaining heifers? Heifers were down 1% on the report but any increase in the cattle inventory is many, many months ahead.
With the low placements will president trump extend the tariff free beef imports into 2027?
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.
