Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOG COMPLEX
Monday’s pork prices started out the week higher. Best of all, loins and hams were higher along with picnics, ribs, and bellies. Loins and hams are cheap. These primals need to rally in order to get hogs off the lows.
Until pork stocks go down in storage, it will be hard to see hogs go off the low prices. Pork is competing with poultry and with poultry production increasing, and a consumer preference over pork, it will be hard to move hog prices higher.
LIVE CATTLE COMPLEX
Live cattle volume was light on Monday. Longs were liquidating October on first notice day and from December through April spread traders were bear spreading but from June on out they were bull spreading. Also spread traders were selling live cattle and buying lean hogs.
Cash cattle trade volume was light last week. Cash cattle sold from 217.00-222.00 averaging 220.00. Packers are docking heavy cattle and heavy cattle are showing up.
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.
