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CME Livestock Daily Options Report

By: PJ Quaid, Senior VP, Agricultural Commodities

livestock options recap 

Brazil is set to quickly resume and even accelerate beef shipments to the United States now that the Trump administration has removed the extra 50% surcharge on Brazilian beef. All 50 processors authorized to export to the U.S. have already restarted production and begun receiving new orders, with demand strong enough that exporters are willing to pay the remaining 26.4% tariff. November exports—after only ten tariff-free days—reached 12,600 tonnes, and shipments are expected to climb toward 35,000 tonnes in December. According to the Brazilian Beef Exporters Association, processors had already been preparing for a policy shift and are now poised to supply significant volumes, recovering sales lost earlier in the year and meeting robust U.S. demand.

 

China’s trade surplus surpassed $1 trillion for the first time after November exports rebounded sharply, rising 5.9% year-over-year to $330.4 billion and reversing the prior month’s decline, according to China’s customs administration. The November performance exceeded economists’ expectations for 3.8% growth and cemented the record surplus even with one month left in 2025. However, exports to the U.S. remain a major weak spot, with shipments to America falling for an eighth straight month—down 28.7% year-over-year to $33.8 billion—despite improving bilateral tensions and easing of tariffs on Chinese goods.

 

PepsiCo is reportedly preparing to review its supply chains and overall operations following the conclusion of discussions with activist investor Elliott Management. The company is expected to focus on developing new products, revising pricing and packaging strategies, and reassessing capital allocation. Elliott, which disclosed a roughly $4 billion stake in PepsiCo in September, has been pushing for structural changes—arguing that PepsiCo’s portfolio has become overly complex and that its beverage segment has been losing market share.

 

Hogs

Bought 200 Feb 88/92 call spreads v. 76 puts paid .40 up to .425 Buy the put

Sold 100 Feb 82/84 call spread @ .90

Sold 300 Dec 83/84 call spreads @ .05 covered 82.050

Bought 100 Feb 74 puts paid .75

Sold 200 Dec 66/86 strangle @ 4.40

Bought 100 Dec 81/80 put spread paid .10 covered 81.70

 

Live Cattle

Bought 1000 Feb 214 puts paid 2.9250 up to 3.0750

Bought 500 Feb 218 puts paid 3.65 up 3.7250

Sold 500 Aug 234 calls @ 5.65 down to 5.2750

Bought 400 Feb 224/210 put spread paid 3.725 up to 3.90

Sold 150 Feb 232 calls @ 4.10

Bought 250 Feb 224/212 put spread paid 3.55

Bought 300 June 230/240 call spread paid 3.05 up to 3.075

 Bought 700 Feb 218/214 put spread paid 1.05

Sold 700 Feb 196 puts @ .75

Bought 200 April 220 puts paid 6.95

Bought 150 Oct 150 puts paid 1.025 up to 1.05

Sold 100 April 248 calls @ 2.10

Bought 250 Feb 227 calls paid 6.5250 up to 6.6250

Sold 300 June 240 calls @ 4.10 down to 4.00

Sold 100 April 224 combos @ 3.35 covered 227.40 selling the call

Bought 150 Feb 180 puts paid .35

Sold 150 Feb 220 calls @ 10.9250 down to 10.80

Bought 100 June 222 combo paid 1.00 covered 221.0 buying the put

Bought 150 June 222 puts paid 2.60 up to 2.70

 

Feeder Cattle

Bought 125 March 310/350 strangle paid 14.00 up to 14.150

Bought 1400 March 320/290 put spread paid 6.825 up to 6.975

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sources

news bloomberg

options data from cme direct
vols from bloomberg

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