Explore Special Offers & White Papers from ADMIS

Feeder Cattle in Demand

Compared to last week. Feeder steers soled steady to 3.00 higher. Feeder heifers mostly 1.00-6.00 higher. Steer calves traded unevenly steady on very limited comparable receipts. Demand good to very good.

Choice boxed beef dropped Tuesday with Chucks dragging cutout lower. Choice Rounds were up but are trading under Select Rounds. Choice briskets are less than Select briskets.  Grind a cut up for hamburger, a seller doesn’t need Choice. There is enough cheap fat on a carcass  to blend so there is no reason to pay up for Choice. Beef market is being moved by ground beef and trimmings markets and that is not a positive indicator.

Moderate movement of pork for Tuesday. Loins up 2.30 and hams jumped 11.05 early in the day and settled up 8.10. Every primal cut higher. Ham strength is likely due to continued buying from Mexico.

Yesterday hog weights dropped to 277.47 live and 208.49 carcass weight. Of course a drop of 4.3 pounds on live weight for one day may be due to a few reasons such as the extreme temperatures over the past week or needing to move extra loads of light hogs because more hogs need to come to the grower buildings, but it does need to be watched. It could mean packers are pulling hogs up. Packers are making big money and want to keep profits going.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started