Explore Special Offers & White Papers from ADMIS

Wide Difference in Cash & Futures

MORNING LIVESTOCK FUTURES OUTLOOK

LIVE CATTLE

June Live Cattle were up .95 cents Wednesday with August up 65 cents. With the wide difference in cash and futures even with a little under 3 weeks to go before delivery, convergence is going to take place. It seems like traders are still anticipating more fed cattle ahead in the summer with discounts already in the market so the COF report Friday better show it.

herd of cattle

LEAN HOGS

With large premiums of Lean Hog futures to cash, something has to give. Wednesday, it was the futures and the daily pork market.  August through February closed Wednesday on new contract lows with July within a few pennies of a new low.  Monday and Tuesday appear to have been a dead cat bounce and with June settling at $84.87 and the CME Lean Hog Index at $77.17, the difference is too wide.

Read more here

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