Written Commentary
Livestock AM Outlook
With boxed beef improving, and packers gaining at least $50 on profit margin, feedlots are asking up to $112. It is more likely $110 will move cattle unless packers pay up on cattle needed to fill previously contracted beef. Average steer weight across the US at 1502 pounds still shows there are still a good many heavy overfed cattle. Deeper discounts likely on heavy cattle and could see premiums paid in cash market for cattle packers need.
On good movement Tuesday, the pork cutout was down 2.71. Hams were off 11.20, Loins were down 1.88, bellies up 6.11. EARLY BUT SETTLED DOWN 98 CENTS. Butts and Picnics only primals higher. Hams settled about 6.50 below 5 day average. Hams need to be watched for direction off cutout unless for some reason loins can move up which isn’t likely unless China comes back in buying carcasses.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
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.
