Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Live Cattle futures volume was moderately active Monday. There are still a few spec traders moving out of June to August and months in front and a large part of the trade Monday were spec traders reversing cattle/hog spreads after the spreads moved to new contract highs Friday. There is a recent negative starting to show up. The difference between Choice and Select boxed beef is narrowing.
Cash hogs and pork prices have been moving up over the past month but with hogs moving up more than pork, it is negative for packers. With beef prices dropping and pork prices up, it is likely consumers are shifting to cheaper pork. Plus, retailers have more supplies of pork to show as pork slaughter is up and cattle slaughter is down.
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