Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Pork prices were higher on early sales Monday on light volume. Hog weights for Friday’s and Saturday’s slaughter compared to Thursday were up 1.5 pounds to 2.5 pounds. It appears packers are trying to support pork prices by keeping kill at current levels versus pushing more hogs through. With the CME Lean Hog Index gaining on the CME Pork Index packers lose if they have to pay up for hogs and sell pork for less.
LIVE CATTLE
June Live Cattle through December Live Cattle are discount to cash and with spreaders bull spread and buying cattle and selling hogs, sellers didn’t seem willing to add to shorts on Monday. There is more talk about a looming recession, and high beef and food prices. For the first quarter of 2023 the US is importing as well as exporting less beef. Along with packers concerned about low slaughter are weighing on cattle since it topped in April.
Learn more about Chris Lehner 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.
