Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Lately, there has been a slight increase in slaughter and weights remain close to 30 pounds over a year ago. Beef imports are huge. The question is, are packers and beef wholesalers storing loins and rib primals for Labor Day or are they will the allow prices to further deteriorate? It’s about time for Live Cattle to start closing the cash and futures spread. With the wide difference, although there is still plenty of time until first notice day for august live cattle, the difference indicates cash prices are likely ahead for a steep drop between now and first notice day.
LEAN HOGS
Positive news for packers as the CME Pork Index is moving higher and faster than the CME Lean Hog Index. On July 17th the spread moved the spread with the Pork Index $9.00 over the Lean Hog Index putting packer margins into the black. Last week, pork exports were disappointing. The increase of hams over the past week could be an indicator Thursday’s exports will show improvement.
>>Read full report here
Interested in more futures markets? Explore our Market Dashboards here
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
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.
