Morning Livestock Report, 11/04/2015

Wednesday, November 04, 2015


Cattle futures opened near unchanged before trading lower for most of the session yesterday, with the nearby Dec live cattle contract down almost $2.00 by the end of the afternoon. As noted yesterday, Dec futures left a large chart gap dating back two weeks which goes as low as $139.55 that the market now seems intent on filling. I also sense a little unease about the boxed beef market which has ticked lower this week despite slowing production schedules and a normal seasonal trend for strength into late November. On the cash front, I've yet to see any real packer bids yet this week, with producers seemingly expecting something $1-2 higher than last week's $138 (South) trade. Even with the weakness seen over these past two sessions, Dec futures at $140.22 + average basis this week of +$0 would seem to be anticipating a cash market near $140.


Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial