Choice Beef Ribs Likely Topped Yesterday

by Archer Financial Services | Nov 30, 2017
By Dennis Smith 
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Higher cash took place for the second consecutive day yesterday. Today, who knows? The cutout was strong with hams and bellies leading the charge upward. Holiday ham demand should be solid for another week at least. Retail pork is soft and vulnerable to weakness. Bellies continue to see impressively strong slicer demand that continues to outstrip current record large production. Hog futures turned lower yesterday but not on high volume of trade. Total volume was only 42,000 with open interest rising by nearly 2,400 cars. Spec buyers countered with hedge type sellers. I’m bearish from a long term fundamental perspective. 



Two items stand out in the live cattle market; first, there’s not been any cash trade yet and second, choice beef appears to have topped out. Both are important because the bullish traders have been talking about higher cash all week and they continue to tout the acute shortage of choice beef rib cuts. Choice ribs seemed to turn yesterday, offered higher early and discounted late. Look for selling to likely develop during the course of today’s session. 

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