Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
August live cattle settled Monday at $182.12. The 5 day negotiated steer price is $194.64. The difference is wide. However, with first notice day for August live cattle on August 5th there is a lot of time for futures and cash to converge. August is $1.67 under October, bear spread. It should be a good indicator of market direction up to first notice day.
LEAN HOGS
July 2024 lean hogs went off the board Monday. August lean hogs continue to gain on October lean hogs. Most funds have moved out of august but there are spread traders with enough long august legs holding long august and short October lean hogs to support the spread. There are 2 weeks left before August is the spot month and with cheap spread margins, spread traders don’t seem too concerned to move trades. Monday the August/October spread settled at $18.65.
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