Livestock Comments 5/24

Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729

Follow me on twitter@commodityinsite

Below are the afternoon livestock comments from my twice a day newsletter Commodity Insite. Hope you find something of interest. My comments were brief and similar to what I have been touting for the past several weeks.


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livestock complex

Lean hog futures are 150 to 110 lower for nearby and back month contracts. Feeders are 5 higher to 30 lower. The live cattle market is 5 higher for June but 25 lower for October. Critter trade is mixed with a soft tone. But the day is young and things can change.

After the close, the USDA will release a Cattle on Feed report. The potential exists for the data to be price positive for front futures but a bearish surprise for the back months. But when it comes to reports, there is no saying what surprises lurk hidden in the details.

I favor long June cattle and short October cattle and nothing else.

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With but a few minutes to go before the critter complex closes for the day June cattle are $111.05, up 25 and October cattle are $107.67, down 37 points. After the close, the USDA will release a Cattle on Feed report that should prove to be price positive for nearby futures but possibly bearish for the back months. But as always when it comes to reports there is no saying what surprises lurk hidden in the details.

The potential exists for the June vs. October cattle spread to make history in the days ahead in favor of the June contract. History will be made if...if cash cattle can rise a bit further while the Cattle on Feed report shows burdensome supplies in the final month of the year. If all that can unfold, history may be made with bull cattle spreads. Time will tell.



And those that wish to read about, learn about the history of futures for the entire Big Four: stocks, bonds, currencies and commodities should check out Haunted By Markets that can be found at commodityinsite.com. And look for the special offer as well, it is a heck of a deal!



Time time is 12:55 p.m. Chicago


p.s. There is no substitute for timely and accurate information.





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