Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
The Choice to Select beef spread continues to narrow. Tuesday on early beef sales Choice Chucks, Rounds and Briskets were less than the price of Select. The narrowing of Choice and Select is not friendly for beef prices and beef prices going down will have packers limiting buying on the showlist. There is a positive side to Live Cattle futures. Traders are bull spreading.
LEAN HOGS
Trade volume was light Tuesday for hogs. A few traders tried to pick a bottom on the open but ended up tossing trades as markets reversed. The April/June spread is bear spread and with April under June, the correction should favor April with April currently under the CME Lean Hog Index.
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