MORNING LIVESTOCK REPORT Monday March 15, 2010
LEAN HOGS
Hog futures closed higher across the board on Friday partly, perhaps, in response to the surge in live cattle and feeders futures. Open interest was up 2579 on the higher action. The commitment of trader data showed the trend following funds holding a net long position (through March 9) of 31,388. The pork fundamentals look at bit sloppy approaching today's session and certainly more sloppy than do the beef fundamentals. I'm expecting a mixed to lower early trade today in hog futures.
LIVE CATTLE
Live cattle futures soared to new highs on Friday, seemingly taking away any topping action from the previous four sessions. The higher prices were driven by another round of higher cash steer prices with packers paying 95 cents in TX, 94 to 95 in KS and mostly 147 for hot beef in NE. The beef was slightly higher Friday on moderate box movement. The commitment of trader data showed the funds holding a record large net long position. When April futures trade 5 points higher today it will fill a gap left on the weekly chart from the collapse in prices in the fall of 2008. This could bring some technical selling to the market. Otherwise, both technically and fundamentally, there's no sign of a top at this moment. Look for a steady to higher early trade.
If you would like more information about this article, please send an email to dennis.smith@archerfinancials.com or contact us at 1.877.690.7303.
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 views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. 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.
