Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Live Cattle futures volume was moderately active Monday. There are still a few spec traders moving out of June to August and months in front and a large part of the trade Monday were spec traders reversing cattle/hog spreads after the spreads moved to new contract highs Friday. There is a recent negative starting to show up. The difference between Choice and Select boxed beef is narrowing.
Cash hogs and pork prices have been moving up over the past month but with hogs moving up more than pork, it is negative for packers. With beef prices dropping and pork prices up, it is likely consumers are shifting to cheaper pork. Plus, retailers have more supplies of pork to show as pork slaughter is up and cattle slaughter is down.
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.
