Explore Special Offers & White Papers from ADMIS

Turn Higher in Beef Markets


The turn higher in the beef market might be a factor to help support an uptrend in the cash market in the weeks ahead, and this could support a smaller discount of June cattle to the cash market. The pickup in the slaughter pace combined with a drop off in weights last week are factors which are positive as Packer’s are in a position to bid higher for cash. The USDA boxed beef cutout was up 43 cents at mid-session yesterday and closed $1.64 higher at $272.11. This was up from $268.04 the previous week and was the highest the cutout has been since February 14. June cattle closed moderately higher on the session yesterday and managed a bounce to a four day peak.


June hogs closed moderately higher on the session with an outside day up. The market has traded in a tight trading range for the fourth session in a row, all inside of the April 5 trading range. Given the oversold condition of the market, it will not take much in the way of positive demand news in order to expect a recovery bounce. However, with the high weights and a large premium of June futures to the cash market, the upside looks limited. The USDA pork cutout, released after the close yesterday, came in at $103.73, up $3.39 from Friday but down from $104.18 the previous week. The CME Lean Hog Index as of April 7 was at $100.06, down from 100.68 the previous session and from 102.63 the previous week.

The USDA estimated hog slaughter came in at 475,000 head yesterday. This was down from 477,000 last week and down from 484,000 a year ago. Friday’s Commitments of Traders report showed managed money traders were net sellers of 11,382 contracts of lean hogs in just one week, reducing their net long to 57,749. US monthly pork exports for February fell to 486.2 million pounds, down 18% from last year. Exports represented just 22.4% of total production versus a peak of 33% in May 2021.

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