Morning Livestock Report, 12/04/2015

Friday, December 4, 2015

Live cattle futures gapped sharply lower yesterday morning and traded weaker from there, with the nearby Dec contract down the expanded $4.50 limit at one point yesterday morning. This as we saw additional cash cattle trade develop in the South at mostly $124 (with some $125), down from a $126-127 market of the prior week. Through just four days this week, Dec futures are off a sharp $6+, but the move has fulfilled some much needed cash-futures convergence and likely shuts down the delivery threat after first notice day next Monday. Dec futures also closing a continuous chart gap left back in early October and satisfying chart watchers. Look for a firmer start across futures this morning. Do remember, though, that the WTO is expected to issue their final ruling on our country of origin labeling law sometime Monday. The WTO ruled against the U.S. this past summer, the U.S. appealed, and most anticipate the U.S. losing this appeal as well, which sets in motion Mexico’s and Canada’s ability to impose new tariffs on U.S. product, meats being one of many targeted products.

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.

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