Lean Hog Futures Becoming Oversold?
MORNING LIVESTOCK FUTURES OUTLOOK
Technically, lean hog futures are becoming oversold but spreads aren’t.
The difference between the CME Lean Hog Index and the CME Pork Index is narrowing and at $3.91 packers aren’t out hunting up hogs to increase slaughter. They are going to kill the minimum number of head just to meet and not exceed contracted pork orders and pork sold on the daily market.
The higher beef market didn’t seem to rattle sellers. The trading range on Live Cattle futures was tight. June Live Cattle, the most actively traded contract had a high of $156.10, the 5 day moving average which it hasn’t been above since February 28th. The day’s low was $155.42.
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