Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Live cattle started out higher Tuesday morning with shorts getting out and liquidating April. With futures over the cash steer average, there is no reason for hedged longs to get out. From June on out to October traders were bull spreading and then bear spreading December 2026 through June 2027.
The spreading goes along with the way traders are anticipating increasing cattle to happen.
LEAN HOG COMPLEX
The cash hog market has been steady over the past week. From April 7th through Tuesday the index has dropped .01/day. The CME Pork Index has also been steady over the past 5 days it’s is up just 28 cents. The difference has gained a bit for the cutout now at 7.71 which is neutral for packers. It likely a reason they have increased slaughter so far this week.
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