Traders: how will the prices of meat change at stock exchange?

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Stock exchange news. The prices of cattle continue to fall, the seasonal tendency lasts. Last Friday a very “hospitable” report on heard condition “Cattle on Feed” was released. It put the prices under additional pressure.

 

Currently June futures bargains below the price level of spot market, which signals about a descending tendency. Additional pressure is provided by strong dollar and liquidity of long positions to non-commercial traders.

 

The descending movement at the market will generally be continued. A turn is to be expected in about a month’s time. It will all depend on US weather and demand from consumers. Seasonal descending tendency usually continues till mid June.

 

Weekly slaughter amounted to 654,000 heads, which is 1,000 heads more than last week’s number, but 31,000 heads less than last year’s number. Beef production amounted to 494 million pounds, which is equal to last week, but 21 million pounds less than last year’s number.

 

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Lean Hogs. Lowering of prices due to the weakness of trade markets and liquidity of long positions have smoothly turned into the descending seasonal tendency. June futures’ prices already bargain below the prices at spot market.

 

In case of increased demand and a considerable lowering of production, corrections are possible, but the main direction of movement remains descending. Seasonal descending movement usually continues till August.

 

Weekly slaughter amounted to 2021 thousand heads, which is 43 thousand heads more than last week’s number and 33 thousand heads more than last year’s number. Lean hogs production amounted to 420 million pounds, which is 9 million pounds more than last week’s number and 10 million pounds more than last year’s number.

 

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The Chair of Derivatives Trading  of Forex Academy and stock exchange trade of Masterforex-V.

 

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