Written Commentary
CATTLE
It is a 4 day trading week and live cattle futures has started out on low volume. June Live cattle go off the board on Tuesday and are in line with last week’s cash and this week’s anticipated $1.00 to $2.00 lower.
Starting out the week boxed beef was up but on light movement. When there are nearly the same amount of trimmings and ground beef moved to Choice, it is not a positive sign. The market needs to move large roasts and high end cuts. When the carcass is being ground up or put into trimmings, it indicates top cuts are not bringing normal margins. The US cattle market is known as Choice and Prime beef.
LEAN HOGS
Pork cutout starting the week out lower on moderately good movement. Loins up 2.60 in the morning ended up 62 cents higher. Hams dropped 5.12 in the afternoon down $15 from a week ago highs and bellies up 22.81 on the morning cutout ended up 7.54 higher.
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.
