Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Thursday’s trade wasn’t fundamental trading. It was out and out speculative trading and specs taking advantage of a non-spot month.
Live Cattle futures June through December 2023 are trading discount to current cash with June Live Cattle under the 5 day negotiated price. Lean Hogs are the opposite, they are premium to the CME Lean Hog index and the negotiated cash price.
Live Cattle opened lower Thursday and then turned higher to close with little change from Wednesday’s close down 5 cents Lean Hogs opened higher, around midday they turned lower and closed with little change with June Hogs down 30 cents.
LEAN HOGS
Cash pork and cash hogs are slowly moving up but at the same time with cash hogs doing better than pork and with tight packer margins, they aren’t going to overload the slaughter. Packers are going to buy enough hogs to fill pork contracts and the left over pork is sold on the daily market.
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