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CME Livestock Daily Options Report

By: PJ Quaid, Senior VP, Agricultural Commodities

Tomorrow is the LTD of the month, quarter and year....full trading day....market is closed until the morning of jan 2 when we will have a hard open.  

 

The Federal Reserve remains cautious and somewhat divided, but the overall bias still points toward eventual easing rather than renewed tightening. Officials generally see inflation risks tilted to the upside, with several concerned that elevated inflation could become entrenched, which argues against moving quickly with rate cuts. At the same time, most judged labor-market risks as tilted to the downside, suggesting restrictive policy may not be needed indefinitely. A few participants who supported a rate cut said they could have accepted no change, while others felt keeping rates on hold for some time was appropriate. The dominant takeaway is that further rate cuts are likely appropriate over time, just not imminently. The Fed is firmly in wait-and-see mode, prioritizing inflation credibility now while keeping the door open to gradual easing later if conditions allow.

Hogs

Bought 200 July 96 puts paid 2.50 covered 103.650

Sold 1000 april 40 puts .025

Bought 200 April 74 puts paid .35

Sold 300 Feb 86 puts @ 2.40 down to 2.20

Sold 200 June 88 puts paid .90

Bought 1000 Feb 78/74 put spreads paid .175

Bought 175 April 78/60 put spread paid .50

Bought 100 Oct 78/74 put spread paid .90

Sold 150 April 88 puts @ 3.075

Bought 150 Feb 84 puts paid 1.70

 

Live Cattle

Bought 200 June 234 calls paid 6.50 up to 6.80

Bought 100 Feb 230/215 put spread paid 3.75

Bought 125 April 205/204 put spread paid .10

Bought 400 Jan 230/229 put spread paid .35

Sold 250 Feb 235 calls @ 2.425 down to 2.40

 

Feeder cattle 

Bought 175 jan 300 puts .225

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sources
news:bloomberg
option data:globex
changes and vols: bloomberg

 

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