CME Livestock Daily Options Report

By: PJ Quaid, Senior VP, Agricultural Commodities

Thu, 08 Jan 2026, 15:47

The Trump administration rolled out new U.S. dietary guidelines alongside an updated federal food pyramid, signaling a clear shift in nutrition policy toward higher protein consumption and stricter limits on added sugar. The guidance emphasizes whole foods and higher-quality protein sources while identifying sugar as a key driver of obesity and chronic disease, reinforcing a broader push to curb sugar intake across American diets. The White House promoted the new pyramid publicly as part of this messaging reset, aligning with policy priorities championed by Robert F. Kennedy Jr. The changes are expected to influence school meals, federal nutrition programs, and food labeling and formulation, with potential ripple effects across agriculture, food manufacturing, and public health debates.

Cal-Maine Foods, the largest egg producer in the United States, said bird flu remains an “extremely strong” threat, underscoring ongoing risks to poultry supply both domestically and globally. Nearly 500 outbreaks were reported across 26 countries in October and November, highlighting the broad global presence of the virus. In the U.S., the outbreak that began in 2022 has affected more than 185 million birds across over 900 commercial operations, with new detections continuing in commercial flocks. Despite reporting earnings that topped expectations, Cal-Maine’s shares fell, reflecting investor’s concern that persistent bird flu disruptions will continue to pressure supply, keep egg prices elevated, and create uncertainty for producers.

Mexico announced a zero-tariff import quota for Brazilian meat, a move that could increase Brazilian exports into the Mexican market and heighten competition for other suppliers. The decision comes amid broader efforts by Mexico to manage food prices and diversify sourcing while navigating ongoing global tariff pressures. By allowing a set volume of Brazilian meat to enter duty-free, the policy may put near-term pressure on regional meat markets and trade flows, particularly for U.S. exporters that have traditionally supplied Mexico, while reinforcing Brazil’s growing role as a low-cost protein supplier in global trade.

U.S. economic data showed a notably stronger tone in December, led by the ISM services sector. The services PMI rose to 54.4, beating all estimates and marking the fastest pace of expansion in over a year, with gains in new orders, employment, and business activity. The ISM new orders index jumped to 57.9 from 52.9, while the employment index rebounded to 52.0 from 48.9, signaling improving labor demand. Price pressures eased modestly, with the ISM prices index slipping to 64.3, a nine-month low but still elevated. In manufacturing-linked data, October factory orders declined 1.3% month over month, though durable goods excluding transportation edged up 0.1%. Canada’s December Ivey PMI came in at 51.9, indicating modest expansion. Overall, the data point to reaccelerating U.S. services activity with firm demand and employment, even as price pressures cool slightly and manufacturing remains mixed.

Cal-Maine Foods reported a sharp year-over-year decline in fiscal second-quarter results due to significantly lower egg prices. Net income fell 52% from a year earlier to $2.13 per share for the quarter ended Nov. 29, while sales declined 19% to $769.5 million, missing analyst expectations. Shell egg sales, which account for about 84% of total revenue, dropped 28%, driven by a 41% plunge in conventional egg sales, though specialty eggs were relatively resilient. Management said diversification efforts and a favorable product mix helped support performance despite pricing pressure, and prepared foods revenue rose from a year earlier, even as it slipped sequentially due to short-term production issues. Shares edged higher in premarket trading, reflecting investor confidence in longer-term earnings durability as the business mix continues to evolve.

Hogs

Sold 100 June 106/114 call spread v. 96 puts @ .55

Sold 250 Oct 88 puts @ 5.475 down to 5.45

Bought 150 Feb 86 calls paid 1.475

Bought 150 Feb 76 puts paid .1750

Bought 200 June 108 calls paid 2.80 covered 2.80

Live Cattle

Bought 200 April 252 calls paid 1.65

Sold 200 June 220 puts @ 5.60 down to 5.50

Sold 300 Feb 238/246 call spreads @ 1.825 down to 1.775

Sold 250 June 238 calls @ 5.85

Sold 250 June 240 calls @ 5.10

Sold 250 Feb 236 calls @ 3.50

Bought 250 April 232/222 put spread paid 2.85

Sold 225 April 241 calls @ 4.375 down to 4.325

Sold 250 April 240 calls @ 4.750

Bought 3000 June 220/210 put spread paid 2.45

Bought 100 Feb 224/219 put spread paid .525

Sold 300 April 218 puts @ 2.225 down to 2.15

Sold 150 Feb 228 puts @ 1.75 covered 234.575

Feeder cattle

Bought 100 may 352/322 put spreads paying 9.100

sources
news bloomberg
options data globex

Meats & Livestock

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Perspective: Morning Commentary for August 13

August 13 – The major stock indices traded quietly mixed overnight ahead of this morning’s weekly job numbers and producer price index data. Like Wednesday, this morning’s data was considered good as well, providing support for stocks while generally allowing Treasury yields to slip a bit lower. The VIX is trading near 14.4, which is just above yesterday’s new low for the year. The dollar index is trading near 99.8. Yields on 10-year Treasuries are trading near 4.64%, while yields on 2-year Treasuries are trading near 4.15%. WTI crude oil is trading near $81 per barrel, while Brent trades near $87 per barrel. Wheat prices again firmed overnight on geopolitical risks in the Black Sea Region, while corn and soybean prices pulled back modestly from yesterday’s big gains.

Arlan SudermanThu, 13 Aug 2026, 13:35

Grains & Oilseeds
Energy
Dairy
Renewable Fuels
Cocoa
Coffee
Cotton
Sugar
Meats & Livestock
Forest Products

Perspective: Morning Commentary for August 12

August 12 – Today’s focus is on inflation, with the July consumer price index data out this morning. We have this, and one more month of data, ahead of the next Federal Reserve meeting. Of course, headlines from the Middle East and the Black Sea wars also have an ongoing influence on the markets. Stock futures posted gains this morning, while the VIX traded just below 15. The dollar index traded near 99.7. Yields on 10-year Treasuries are trading near 4.66%, while yields on 2-year Treasuries are trading near 4.18%. WTI crude oil is trading near $83, while Brent trades near $88 per barrel. The grain and oilseed markets rebounded from yesterday’s losses ahead of today’s highly anticipated WASDE crop report that is due out at Noon Eastern Time.

Arlan SudermanWed, 12 Aug 2026, 13:33

Grains & Oilseeds
Energy
Dairy
Renewable Fuels
Cocoa
Coffee
Cotton
Sugar
Meats & Livestock
Forest Products

Perspective: Morning Commentary for August 11

August 11 – It was generally a quiet night for the markets until early this morning when a headline hit that Iran and Oman were close to reaching a deal. Stock futures rallied, while the dollar index followed Treasury yields lower, along with active selling in the energy- and food-based commodities. The headline had limited impact though in a world that has become skeptical of promises of peace. Stock futures remain steady to firmer at this hour, while the VIX trades near 16 – just above 2026 lows. The dollar index is trading near 99.8 this morning, after recovering from its early morning selloff over the following hour of trade. Yields on 10-year Treasuries are trading near 4.69%, while yields on 2-year Treasuries trade near 4.22%. WTI crude oil is trading near $82 per barrel at this hour, while Brent trades near $88. The grain and oilseed markets are mostly weaker, after failing to recover from this morning’s early selloff that started in the crude oil market.

Arlan SudermanTue, 11 Aug 2026, 13:21

Grains & Oilseeds
Energy
Dairy
Renewable Fuels
Cocoa
Coffee
Cotton
Sugar
Meats & Livestock
Forest Products

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