Written Commentary
USDA released a 20-page report on the trading that happened after the Aug 12, 2019 fire in Garden City Tyson Plant. The report concluded there was no inappropriate trading.
CATTLE
Last week the year to date slaughter was .3% more than a year ago. It is likely packers have been able to work through most of the backed up cattle using big Saturday kills to push more cattle through the plants. A few cattle in the Southwest are where it is believed cattle still need to be killed.
The Fed Cattle Exchange had 1,022 head for sale at the Wednesday Internet sales. 422 head sold from 96.00 to 96.25. Cattle offered at 96.50 to 97.00 were passed over.
HOGS
Moderate movement Wednesday with the pork cutout down reversing Tuesday’s move up Carcass cutout was down 2.90, loins fell out of bed down 8.12 early to settle down 2.83 and hams dropped 4.42 in the morning to settle down 2.33.
Don’t get too caught up in the individual fluctuating cuts. Most pork is being sold as carcass, but even in the US like beef, pork is being ground up or trimmed out and further processed. As reported a month ago, products like SPAM are having some of the best sales in years.
Last week’s exports were strong at 38,500 metric tonnes. As mentioned, Mexico has been a consistent strong buyer in 2020 and China the first quarter of 2020 lived up to Phase One at least in pork. China has stopped several S.A. plants from exporting and just may be needing it’s old US pork friends.
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.
