Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
The cattle market is still working to absorb the closure of the Tyson plant in Lexington, NE. A strike at JBS plant in Greeley, CO would be negative for cattle prices and possibly enough to break the market. It would also mean that beef prices would rise.
However, don’t be surprised to see the government step in with an emergency order that would force the union to work. During the covid-19 pandemic, when businesses were shutting down, president trump used the “defense production act” to keep packers and processors working.
LEAN HOG COMPLEX
June lean hogs on out made new contract highs. Spread traders are using June, July and August as the long legs of bear spreads.
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