Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Thursday was a good example of speculators controlling the trading. February Live Cattle are trading fundamentals but April on out especially April and June are where the speculators are the most active. Since the last COF report traders have been anticipating fewer cattle for the spring and demand for beef to increase. Thursday on light volume Live Cattle futures opened stronger without big new money behind the trade.
LEAN HOGS
June and summer month high priced compared to April and especially current prices. Thursday volume substantially increased as sellers came into lean hogs and moved prices off the high. Slaughter is increasing and with packers working in the black they aren’t hesitant to pay up for hogs especially with pork prices up better than hogs. Pork prices remain cheap and on the global market pork demand is strong.
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