Live Cattle futures spreads: Neutral-to-Bullish
- The October-December closed at (-$2.925)
- as compared to the end of August settlement at (-$1.125)
- and the previous 5-year high weekly close for the last week of September at $1.05
- with the previous 5-year average weekly close for the last week of September at (-$4.275)
- The December-February closed at (-$2.20)
- as compared to the end of August settlement at (-$1.475)
- and the previous 5-year high weekly close for the last week of September at (-$0.575)
- with the previous 5-year average weekly close for the last week of September at (-$4.15)
- Indicating more cattle to be priced against the December futures contract
- The February-April closed at (-$0.975)
- as compared to the end of August settlement at (-$0.20)
- The bottom line is commercial traders were putting pressure on futures spreads across the board in live cattle. While I won’t go as far as to say the herd is suddenly expanding again, I will say the longer-term fundamental outlook is not as bullish as before.
Feeder Cattle futures spreads: Bullish
- The October-November closed at $1.675
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- as compared to the end of August settlement at $0.875
- The November-January closed at $6.30
- as compared to the end of August settlement at $5.975
Lean Hogs futures spreads: Bullish
- The October-December closed at $11.125
- as compared to the end of August settlement at $7.625
- and the previous 5-year high weekly close for the last week of September at $10.475
- The December-February closed at (-$1.575)
- as compared to the end of August settlement at (-$2.225)
- and the previous 5-year high weekly close for the last week of September at (-$1.125)
- with the previous 5-year average weekly close for the last week of August at (-$3.325)
- The February-April closed at (-$2.55)
- as compared to the end of August settlement at (-$2.825)
- and the previous 5-year high weekly close for the last week of August at (-$2.20)
