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Higher Livestock Outlook

Cheap US Dollar is encouraging exports along with several pork, poultry and beef plants in Argentina and Brazil shut out of China because of COVID 19. South Korea has been big buyer of beef. More than likely part of South Korean’s exports are going to China through grey market.

Live cattle and feeder futures settled up Thursday at the levels when cattle broke hard March 4 – 6, 2020. For the week boxed beef has improved on primal rib sections but chucks and rounds down for the week. Movement has been light on daily cutout compared to June and especially when there were shortages.

August Lean Hogs settled below a gap and below all moving averages. October Hogs are just  $1.37 above the lowest settlement on July 8, 2020. August settled at $51.42 and $1.52 below the latest CME Index. Similar to Live Cattle trade volume was and has been light. Throughout the day, trade volume in hogs and cattle were very close.  Strong pork  exports during July are encouraging.

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.

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