Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
FEEDER CATTLE
Feeder Cattle closed higher Thursday on contract highs. Wheat and corn lower Thursday gave traders another boost up. However, feeder cattle spreads are bear spread and with a Cattle on Feed report Friday afternoon, it is likely to see spreads reverse after the report as traders buy nearby months and sell big premiums in the fall and winter.
LIVE CATTLE
Boxed beef on morning sales recovered losses of Wednesday for Choice beef and sold off on Select beef showing stronger demand and widening the spread between Choice and Select, normally as spread widens, it is positive. Trading was moderately active with spread traders buying cattle and selling hogs. Live Cattle from June through December are discounted to April Live Cattle and Hogs June through October are premium to cash and traders are taking the opportunity to buy cattle and sell hogs.
LEAN HOGS
Trade volume was light Thursday. Cash hogs and pork have been trading mostly sideways over the past week but with large premiums to current cash on the summer hogs, the path of least resistance is down. The pork carcass has been moving sideways. Loins 5 day average price is 80.60 and hams 5 day average price is 71.85 For a price increase both need to move higher.
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