Written Commentary
MORNING LIVESTOCK OUTLOOK
Similar to the past 4 weeks packers last week bought cattle $138.00 to $139.00. Dressed cattle sold mostly for $222.00 but there were loads going as high as $228.00 in the Midwest. There were cattle in the Midwest selling up to $142.00 with a very few loads up to $143.00.
Feb and March, spec spread traders widened spreads and now they are narrowing the spreads. To add to the negativity, the pork cutout has been dropping and for the packer, the spread between cash hogs and pork futures is narrowing. Pork is losing to hogs and when this happens, packer margins turn negative.
Learn more about Chris Lehner 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.
