Written Commentary
LIVESTOCK AM OUTLOOK
Primal rib and loin section have been moving higher for the entire rally this year but as of late it has been the middle and lower end cuts that have been pushing boxed beef prices more than the high end cuts.
Weights are low for this time of the year and slaughter numbers are dropping. Packers need hogs. Monday only 259 loads of pork moved. Think of it, for all the hogs killed, less than 300 trucks with 40,000/lbs moved. Of course many more loads of pork were priced, sold and distributed. Packers are using pork to fill contracts first and then selling what is available on open market. Pork has been moving higher.
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.
