Cattle on Feed Report Negative
Beef appears to be slowing the free fall. High end cuts primal ribs and loins keeping product at current levels with chucks and round off last week’s lows.
The Cattle on Feed report was on the negative side, not because there will be too many cattle but because there will be more than enough beef. With carcass weights up 50 plus pounds over a year ago and placements essentially the same as a year ago, there is going to be a lot of beef.
Pork cutout started out Monday stronger but gave up most the gains on afternoon trade. Loins were down 1.72 but hams were up 13.51 in the morning to end day up 1.14 and bellies up 23.61 in the morning settled up only 61 cents.
Bellies could move up. August is often a strong month for bellies as August is known for BLT’s. Restaurants are opening as the largest cities like New York city are re-opening.
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.