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Drop in Cattle Prices Help Cash Buyers

MORNING LIVESTOCK FUTURES OUTLOOK

LIVE CATTLE

The CME Boxed Beef Index was down $2.67 from a week ago.  Boxed beef is being supported by Primal Rib and Loins for Choice and Select beef mainly due to low availability of the products.  Price support could be daily buyers that buy hand to mouth and/or contract beef buyers needing extra into the holidays. If it is contract beef buyers, they have beef purchased at much lower levels and buying a few loads now wouldn’t be a bump on prices on previous purchases.  The concern is what will buyers do when demand lessens after the holiday buying is over.

cattle rancher

FEEDER CATTLE

Cash buyers are going to use the drop in futures buy cash feeder cattle lower. The drop in live cattle prices will make feedlots even more cautious buying feeders and replacing feeder cattle.

LEAN HOGS

The CME Lean Hog Index gained 3 cents and the CME Pork Index was up 99 cents. Packers are working in the black and should keep kill lines full. Kill and weights need to be monitored going forward.  Don’t want to see a reduction in slaughter with increasing weights. Exports are the bright spot and into 2024 need to remain strong.

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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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