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 (Nearby futures): The futures market extended its major (long-term) uptrend to a high of $217.075 last month. The April contract went off the board priced at $215.75 with the June issue taking over as nearby contract at $208.40. Fundamentally, the market remains bullish, according to futures spreads. 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 (Nearby futures): The futures market extended its major uptrend to a high of $294.80 before closing April at $292.575, up $6.125 for the month. Theoretical Positions: Hedgers have likely continued to roll put options up and sell cash (see Weekly Analysis).
Lean Hogs (Nearby futures): I’m still not seeing anything concrete with the lean hog futures market. Based on monthly stochastics, it could be argued the market is in a major uptrend. The previous 4-month high is $94.70 from February. Theoretical Positions: Cash hogs could continued to be sold when ready.
