Livestock Trending Higher
Boxed beef lower again Wednesday and again the reason for the lower beef market are the primal rib and loin sections. The equity and stock markets aren’t reflecting what the US and global consumers are doing with their money. Also, there is no shortage of cattle, hogs, and poultry in the US and around the world.
Cattle futures were up Wednesday on light to moderate trading. Speculators have the ball in their court for the next few weeks without a spot month. Cattle futures are bear spread and will likely continue to be bear spread and could widen more when funds roll out of August.
Pork cutout Wednesday shows sellers working a formula to sell whole carcasses compared to selling big loads of various boxed primals. Like beef, consumers are buying ground products, processed pork like sausages and canned products. Loins dumped Wednesday morning, but hams jumped essentially crossing out each other’s gains and losses The carcass price has been trading from $63.00 to $65.00. China has been a buyer of carcass meat this year and likely why carcass prices about the same.
Weights are down because hogs that were euthanized in March and April were hogs from growing barns not finished hogs. Pigs that were headed into the growing barns from nurseries and heavy pigs that would have moved to finishing facilities were euthanized.
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.