Written Commentary
Trading the past week was slow with light volume. Most of the trading for cattle, feeder cattle and lean hogs were spreads both intra and intermarket spreading. Cash cattle markets are in some areas $1.00 better than last week. Federal slaughter is down from a week ago.
However, cattle weights are more than they were a year ago, by 30 to 40 pounds and the extra weight adds a lot more beef to the market. With most Select beef and majority of Choice going to trimmings, ground beef, and further processing, a heavier animal is better than a lighter one. Breaking apart a larger carcass takes the same time as a carcass weighing 30 to 40 pounds less. Lean hog trading volume was light.
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.
