Explore Special Offers & White Papers from ADMIS

Spread Between Cash Hogs & Pork Narrowing

MORNING LIVESTOCK OUTLOOK

Similar to the past 4 weeks  packers last week bought cattle $138.00 to $139.00. Dressed cattle sold mostly for $222.00 but there were loads going as high as $228.00 in the Midwest. There were cattle in the Midwest selling up to $142.00 with a very few loads up to $143.00.

Feb and March, spec spread traders widened spreads and now they are narrowing the spreads. To add to the negativity, the pork cutout has been dropping and for the packer, the spread between cash hogs and pork futures is narrowing. Pork is losing to hogs and when this happens, packer margins turn negative.

click here for full report

Learn more about Chris Lehner here

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started