CME Livestock Daily Options Report
Recap of day's options activity and data.
PJ Quaid
- Meats & Livestock
CME Livestock Daily Options Report
By: PJ Quaid, Senior VP, Agricultural Commodities
The livestock CFTC report showed cattle still carrying fund support, while hogs weakened. Managed money remains heavily net long live cattle at about 115,000 contracts, though funds trimmed length modestly on the week, suggesting some profit-taking rather than a major bearish shift. Feeder cattle positioning was steady and constructive, with funds slightly adding to a much smaller net long, leaving that market less crowded than live cattle. Lean hogs were the weak spot, as managed money sold nearly 20,000 contracts and moved to a small net short, while commercials were strong buyers against that selling. Overall, cattle sentiment remains supportive but crowded in live cattle, while hogs saw a clear negative turn in speculative positioning.
Food prices were largely steady in May, according to the UN FAO, as higher cereal and sugar prices were offset by weaker vegetable oil and dairy values. The FAO food price index averaged 130.8 points, down 0.2% from April but still 2.9% above last year. The bigger takeaway is risk: Middle East supply disruptions and rising fertilizer costs could broaden food inflation pressure if the conflict worsens.
Soybean oil’s sharp break appears tied in part to fresh uncertainty around EPA biofuel policy. EPA’s final 2026–27 RFS rule was released on March 27 and had been a major bullish driver because it raised renewable fuel obligations and supported expectations for stronger biomass-based diesel demand. That helped build a sizable policy premium into bean oil. The pressure came later when refiners challenged the rule in court, with AFPM filing suit on May 29 and the headline gaining broader market attention on June 3. The lawsuit does not immediately change the mandates, but it gives the market a reason to question how durable that demand support will be. In short, the break looks less like a sudden collapse in physical demand and more like a liquidation of policy premium, with legal uncertainty, profit-taking, and a crowded long trade all contributing to the selloff.
Markets are repricing the Fed path more hawkishly after the stronger employment data. The key takeaway is that traders now see the economy running hot enough that the Fed may need to raise rates again as soon as October, rather than simply stay on hold. The argument is that AI-driven investment and productivity demand may be lifting the economy’s “neutral” interest rate, meaning today’s policy rate may not be as restrictive as previously thought. SOFR/fed funds pricing has shifted sharply: markets now price roughly 24 bps of hikes by October and about 41 bps by April 2027, versus a week ago when a full 25 bps hike was not priced until March. For markets, that is a bearish signal for duration and a support factor for the dollar, while it can pressure risk assets and commodities if higher-for-longer rate expectations tighten financial conditions.
U of M sentiment came in weak again, with the final May reading at 44.8, down from 49.8 in April and below the preliminary May reading of 48.2. The weakness was broad-based: current conditions fell to 45.8 and expectations dropped to 44.2, showing consumers are feeling pressure both now and looking ahead. The main issue remains inflation and cost of living, especially higher energy/gasoline costs tied to geopolitical risk. For markets, this is a stagflation-style signal: softer consumer confidence argues slower growth, but elevated inflation expectations make it harder for the Fed to turn dovish quickly.
Hogs
Bought 1000 Aug 102 calls paid 2.00 up to 2.40
Bought 400 June 94 calls paid .90 up to 1.00
Bought 300 July 100/110 call spread 1x2 1.45
Bought 800 Aug 105 calls paid 1.325 up to 1.35
Sold 150 Dec 86/78 puts spread v. 90 calls @ 3.975 down to 3.95
Live Cattle
Sold 200 July 242/237 put spread @ 1.875 down to 1.85
Sold 500 Feb 248 calls @ 6.30 down to 6.2750
Sold 500 Feb 244 calls @ 7.525 down to 7.05
Sold 150 Dec 224 puts @ 6.05
Bought 400 Feb 250 calls paid 5.00 up to 5.25
Bought 150 Aug 244 calls paid 5.7250
Sold 200 Aug 230/250 strangle @ 5.25
Bought 300 Aug 240/230 put spread paid 3.30
Feeder Cattle
Bought 100 Sept 340 puts paid 10.175 up to 10.35
Sold 500 Nov 320/380 strangles @ 13.00 On A Block
Sold 100 Aug 332 puts @ 3.9250 covered 354.875
- Meats & Livestock
This material should be construed as the solicitation of an account, order, and/or services and represents the opinions and viewpoints of the individual authors or presenters. It does not constitute an individualized recommendation or take into account the particular trading objectives, financial situations, or needs of individual customers.
The views are current only through the date stated and are subject to change at any time based upon market or other conditions, and StoneX Group Inc. (“SGI”) disclaims any responsibility to update such views. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. Past performance does not guarantee future results.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided.
References to certain OTC products or swaps are made on behalf of StoneX Markets, LLC (SXM), a member of the National Futures Association (NFA) and provisionally registered with the U.S. Commodity Futures Trading Commission (CFTC) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ and who have been accepted as customers of SXM.
StoneX Financial Inc. (SFI) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (SEC) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. StoneX Financial (Canada) Inc. (SFCI) is registered in Canada and is a member of CIRO and CIPF. References to certain securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to certain exchange-traded futures and options are made on behalf of the FCM Division of SFI. Wealth Management is offered through SA Stone Wealth Management Inc., member FINRA/SIPC, and SA Stone Investment Advisors Inc., an SEC-registered investment advisor, both wholly owned subsidiaries of SGI.
R.J. O’Brien & Associates, LLC (RJO) is registered with the CFTC as a Futures Commission Merchant and is a member of NFA.
StoneX Financial Ltd (SFL) is registered in England and Wales, company no. 5616586. SFL is authorized and regulated by the Financial Conduct Authority (FCA) (registration number FRN:446717) to provide services to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorized to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorized and regulated by the FCA under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorized by the FCA.
This communication is issued in the European Economic Area by StoneX Financial Europe GmbH (SFEG). StoneX is the trade name used by STONEX GROUP INC. and all its associated entities and subsidiaries. StoneX Financial Europe GmbH (“SFEG”) is a securities trading firm registered in Germany under Company No. HRB 80844.
StoneX Financial Pte Ltd (Co. Reg. No 201130598R) (“SFP”) is regulated by the Monetary Authority of Singapore and is a Capital Markets Service Licence holder (for dealing in capital market products), an Exempt Financial Adviser (for advising on investment products and issuing or promulgating analyses/ reports on investment products) and a Major Payment Institution (for domestic and cross-border money transfer services).
SFP may distribute analysis/report produced by its respective foreign affiliates within the StoneX Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations Recipients should contact SFP at (65) 6309 1000 for any matters arising from, or in connection with, this webinar.
StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism.
StoneX Financial (HK) Limited (CE No.: BCQ152) (“SHK”) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.
StoneX Financial Pty Ltd (ACN 141 774 727) holds an Australian Financial Service License (AFSL: 345646) for Dealing in Securities, Exchange-Traded Derivatives Contracts, OTC Derivatives Contracts and Foreign Exchange Contracts, and is regulated by the Australian Securities and Investments Commission.
StoneX Securities Co., Ltd. (“SSJ”) (Co. Reg. No 010401047199) is regulated by the Japanese Financial Services Agency as a Type-I Financial Instruments Business Operator (Kanto Local Finance Bureau (FIBO)No.291’), is a member of the Financial Futures Association of Japan for dealing and broking FX and FX Option transactions, and is a member of the Japan Securities Dealers Association for dealing and broking stock indices and option transactions.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
The report/analysis herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.
© 2026 StoneX Group Inc. All Rights Reserved.
Discover more insights
Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
Related articles for Meats & Livestock
CME June'26 Live Cattle Option Open-Interest Ahead of Today's Expiration (as of cob 6/4)
Snapshot of CME Livestock option open interest
Peter Brooks
- Meats & Livestock
The MarketWatch Update
Today's commodity market news and analysis/advisory guidance.
US RJO - Scott Magnuson, CTA
- Precious Metals
- Grains & Oilseeds
- Energy
- Coffee
- Cotton
- Sugar
- Meats & Livestock
- Currencies
- Interest Rates
StoneX: We open markets
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
Reach
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise
From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.