Written Commentary
MORNING LIVESTOCK OUTLOOK
Near term cattle prices are being pressured by the falling beef market. Traders have already been friendly to spring and summer cattle because they were buying April and selling June on bulls spreads. Since Algo traders spread multiple legs, bull spreading will become more evident into April and June through fall and into 2024.
Hogs closed slightly lower Monday on light volume. Technically, not much happened with closing prices moving up to the highs of Friday but ending the day remaining below the 5 day average. Spreads remain wide with April/June $16.90 below June. February Lean Hogs with about 3 weeks to go before expiration are $4.92 above the CME Lean Hog Index.
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