Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
June Live Cattle were up .95 cents Wednesday with August up 65 cents. With the wide difference in cash and futures even with a little under 3 weeks to go before delivery, convergence is going to take place. It seems like traders are still anticipating more fed cattle ahead in the summer with discounts already in the market so the COF report Friday better show it.
LEAN HOGS
With large premiums of Lean Hog futures to cash, something has to give. Wednesday, it was the futures and the daily pork market. August through February closed Wednesday on new contract lows with July within a few pennies of a new low. Monday and Tuesday appear to have been a dead cat bounce and with June settling at $84.87 and the CME Lean Hog Index at $77.17, the difference is too wide.
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