Livestock Futures Markets See a Mixed Bag of USDA Meat Data

ANALYSIS - Thursday afternoon's USDA Cattle-on-Feed report is being called mildly bullish for cattle futures markets.
calendar icon 1 November 2013
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Jim Wyckoff Commentary -  TheCropSite

The report, which was delayed from earlier this month, showed cattle on feed at 92% of levels seen one year ago, which is slightly below trade expectations. Cattle marketings, at 106% of year-ago levels was also were deemed positive. Placement of cattle on feed were slightly above trade expectations, at 101% of year-ago.

While the latest cattle-on-feed report is likely to support live cattle futures Friday, focus is on the U.S. cash cattle market, which has traded at record-high levels the past couple weeks.

Meantime, USDA's Cold Storage report Thursday afternoon is deemed bearish for cattle futures and neutral for lean hog futures.

Frozen beef stocks at the end of September were 445.047 million pounds, which is around 13 million pounds higher than traders expected. End-September frozen pork stocks were at 566.367 million pounds, which is slightly above the average trade guess.

However, total U.S. pork stocks were 10% lower than year-ago levels at the end of September.

TheCattleSite News Desk

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Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

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