Livestock Markets Higher
The Fed Cattle Exchange on Tuesday has 1,447 head for sale. Over the past couple of weeks cattle offered for sale have been dropping. The fewer head for sale show packers aren’t cancelling contracts.
June live cattle moved higher Tuesday for a couple reasons, and it pulled up the other futures with it. Spec spreading as usually was one reason. Buying June and then selling on out. Volume was just moderate, so it doesn’t appear to be a market that is going to rally for any length of time. Cash markets haven’t been established this week and June has been trading below cash. Maybe this week showlist pricing will go back to the way it was priced over the past many years with a showlist price established Thursday or Friday. A big part of the move up had to do with specs couldn’t push it lower and sustain lows over the past couple of days. The specs took in shorts and some buy stops were hit.
Moderate volume trade on Tuesday. CME Hog Index keeps dropping and narrowing gap between futures and high end of Formula priced hogs. Direct hogs average price slightly above $30.00.
Traders are waiting to see if pork prices find a bottom and t if China buys as they did January through April. China over the past 4 weeks has stopped the surge buying of pork. After breaking records the first quarter and April, May exports to China and Mexico just mediocre
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.