Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Live Cattle recovered little of the losses of Mon. Technically, trading on Tues did nothing to help bulls. Moving averages have reversed. The bright spot for LC has June bull spread to August but from August on out Live Cattle are bear spread. Beef prices before the Avian Flu news were beginning to move down and the difference between Choice and Select grades were narrowing.
LEAN HOGS
April Lean Hogs settled Tuesday at $86.55 and the CME Lean Hog Index is $84.78 but it is two days behind. Pork prices have been steadily gaining. Packer profits show profits. Cash hogs have been gaining. When it boils down to it packers making money mean they will pay more for hogs. The question with beef prices moving lower, will it affect pork prices? If it does, it depends on how low beef falls and it probably won’t be a sudden drop.
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