Chewing on Bad Livestock Market News

April 15, 2020 10:20 AM
the market has done a good job on pricing in the doom and gloom
Fed Cattle Exchange sale on Friday
Meats Market Update

Meats Market Update

Livestock Roundup

Monday sessions have been difficult over the last few weeks as market participants see nothing but bad news while the market is closed. We were able to chew through that bearish sentiment and saw a more constructive trade yesterday. It can always get worse before it gets better but looking where Livestock futures were last month compare to where they are at now (specifically cattle), indicates the market has done a good job on pricing in the doom and gloom. Early morning calls are mixed for cattle and lean hogs. We have been more active over the last week and a half, when the market isn’t locked. Working with clients over the last week, we’ve been keeping things much tighter in terms of time frame and have ratcheted back the position sizing. If you want to build and hold a longer-term position, options are a great tool to give you that exposure while allowing you to stomach the daily moves. The Fed Cattle Exchange sales is scheduled for this Friday, April 17.

Today's Daily Limits

Live Cattle: 3.00

Feeder Cattle: 4.50

Lean Hogs: 3.75

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