Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
FEEDER CATTLE
The meteoric rise in the feeder cattle market these past few weeks has been unprecedented and the demand for green, thin-fleshed type cattle continues again this week. Turn out time is quickly nearing and the demand for grass suitable steers and heifers is red hot. Good to very good demand for all weights of steers and heifers as cash fed cattle reached new, all time high record prices. The feeder market is incredibly active as cattle feeders are very anxious to get cattle bought as they are feeling very hopeful for the future months in the fat cattle market.
LIVE CATTLE
Live Cattle traders were bull spreading Tuesday with futures moving higher on moderate volume. Cattle traders are also buying cattle and selling hogs.
LEAN HOGS
Twice this year, first in January and then in March, when a month goes off the board, because of bear spreads, the next month when it becomes the lead month, hog prices drop. There is a May contract but it is so lightly traded, very few traders use it. It might be too early for June to drop as hard or fast as did February and April did, but when traders lift bear spreads, they reverse spreads. Traders were selling April and buying June hogs.
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