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Beef Demand

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Tuesday’s live cattle trade was higher except for August as the few long  spec traders left in August finally exited positions. Volume was light. Feedlots at current levels are beginning to question how much more upside market has in it. But with Boxed Beef taking  day after day steps higher, market looks strong.

The demand for beef has done an about face over the past three weeks.  There is strong demand for Choice Rib and Loin sections. It is no longer being blended into trimmings and ground beef.

A drop in US hogs should be friendly to prices but with the fast growing numbers in Argentina and Brazil, the Ukraine and EU pork producing counties along with exponential rebuilding along with expansion in China and Viet Nam, price improvement in the US will need to  from mainly internal demand and Mexico remaining a consistently strong buyer.

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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