Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
Avian flu is the news of the day but when it all boils down, packers are losing money on showlist cattle and boxed beef. It is an unknown what packers make or lose on contracted cattle, their own cattle and beef previously contracted. But with fewer cattle for slaughter, it is costing packers. Consumers are also resisting higher priced beef.
LIVE CATTLE
Cattle trade volume was moderately active Tuesday. April 2024 Live Cattle went off the board at $185.00 down 40 cents settling in between last week’s prices for Southwest cash cattle and cattle in the Midwest. For June Live Cattle on out traders were selling. From the April closing price to June closing price on Tuesday the difference widened to $10.05 widening $1.80 from Monday. At the same time as outright futures moved lower, spread traders were bull spreading.
LEAN HOGS
Trade volume was light Tuesday as Lean hogs closed mixed. Futures moved to resistance early and then sold off into the close. Pork prices have been moving lower and cash prices remain near where April settled $90.00. Summer hogs are at a large premium to cash.
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