Live Cattle (Cash Index): The Index posted a new all-time high of 208.00 during January, closing at that price, up $16 for the month. Theoretical Positions: Hedgers have likely been rolling put options up during the major uptrend and sold cash as needed. Cash cattle could continue to be sold.
Feeder Cattle (Cash Index): The Index posted a new all-time high of 281.07 during January, closing at that price, up $20.02 for the month. Theoretical Positions: Hedgers have likely continued to roll put options up and sell cash.
Lean Hogs (Cash Index): I’m still not seeing anything concrete with the lean hog cash index other than an extended series of lower highs and lower lows. By definition this is a downtrend. For the record, the Index posted a new 4-month low of $80.433 before closing January at $83.059, down $0.931 for the month. Theoretical Positions: Cash hogs could continued to be sold when ready.
