Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
It was a moderate day of trading Thursday. February live cattle dropped to the 100 day moving average. The February/April live cattle spread did widen extending the bear spread. April dropped to the 40 day moving average. One significant negative, contracts settled on or near the lows of the day. This type of trading indicates a reversal could be imminent. Open interest remains large even with the recent liquidation.
PORK COMPLEX
Volume was light Thursday. February’s volume was just 18,629 contracts and April 6,698 contracts.
December open interest remains heavy especially with December going off the board in a week. December open interest came in at 38,505 contracts. Compare it to December cattle where there is an actual delivery process with December open interest Thursday was 25,592.
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