Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Friday was another heavy trading day for Live Cattle futures as shorts continued to liquidate and spec traders were bull spreading. June Live Cattle have been trading discount to the cash cattle market and with convergence nearing, cash prices were going have to drop or Live Cattle had to move up. Bullish fundamentals have been indicating Live Cattle were going to be the component to correct the difference especially with cash cattle and beef improving.
FEEDER CATTLE
New all-time highs were made in Feeder Cattle on Thursday and new all-time high closes. Previous high $245.20 on October 9, 2014.
LEAN HOGS
As of Friday morning pork sales, the 5 day average pork carcass price compared to a week ago was up $1.97 and from May 1st, it was up $5.00. All primal cuts are higher compared to May 1st except bellies. Loins and especially hams had significant gains. Pork butts had the biggest monthly gain as more home smokers and restaurants see increases in the summer.
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