Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Trade volume was light Tuesday. With the Cattle on Feed report on May 22nd, traders are taking profits or losses from outright futures positions to inter and intra spreads.
Open interest has been increasing as traders have been adding longs with cattle/hog spreads and bull spreading cattle.
LEAN HOG COMPLEX
Trade volume was light Tuesday. Unless traders are spreading from August on out, trading is two sided. Traders are concentrating on June as it nears convergences and from August on out speculators are either spreading cattle and hogs or bear spreading hogs.
Traders will be watching what pork exports did last week. Exports for the year are up but have been dropping off.
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