It has been quite a morning in the livestock sector, with both cattle markets sharply higher on renewed commercial buying and lean hogs sharply lower on solid selling from the same group. The move in cattle might be the more interesting given the lower cash and cutout markets reported so far this week. Friday is another great example of Newsom’s Market Rule #5: It’s the ‘what’, not the ‘why’. We can see what is driving the markets (commercial activity), and we will find out the why later.
