Side Note: I will be taking a look at month-end futures spreads in the three major livestock markets in Supply and Demand Commentary.
Live Cattle (Cash Index): The market gained all of February’s losses back during March. The major (long-term) trend is up until a new 4-month low is posted. 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 extended its major uptrend to a high of $287.78 before closing March at $286.76, up $6.18 for the month. Theoretical Positions: Hedgers have likely continued to roll put options up and sell cash (see Weekly Analysis).
Lean Hogs (Cash Index): I’m still not seeing anything concrete with the lean hog cash index. After posting a new 4-month low during January, the index reversed course and posted a new 4-month high during February. Based on monthly stochastics, it could be argued the index is in a major uptrend. The Index consolidated in a narrow range during March. Theoretical Positions: Cash hogs could continued to be sold when ready.
