Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOGS
Weekly price change was small. June Lean Hogs had small gain following better cash hogs and pork, but traders have hard time pushing prices high with wide spread of cash to June futures. The CME Lean Hog Index at $75.40 is $8.37 under June Lean Hogs. Cash hog prices were higher and pork prices were higher due to fewer slaughter hogs.
LIVE CATTLE
Live Cattle had decent gains for the week. Spec traders continue to bull spread and continue to buy cattle and sell hogs. The Live Cattle/Lean Hog spread made new contract highs. With cash cattle premium to Live Cattle, over next three weeks, look for cash and futures slowly drift closer as futures move to meet cash cattle prices and likely cash prices down as futures move up.
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