Tuesday Midday Livestock Comments

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Anonymous

Cattle futures have fallen into lower territory at about mid-session, led by cash-connected sources. Trade was pushed higher out of the gate on a friendly cash outlook, but soon gave way to the cash-connected sell pressure and weakening bull spreads. Yesterday's lows were taken out and we look to test the lows of last week before finding any support. Beef prices were a little higher at midday, but on light volume. Weather looks ideal for grilling, so hopefully we see a good pick up in demand as we work through a good supply of cattle. If we see that begin to develop, I'd find it hard to resist buying June fats at it's current $4 discount to cash.

DRIER WEATHER FORECASTS, WHICH ARE PRESSURING THE GRAINS THIS WEEK, ARE FAVORABLE TO INCREASED GRILLING (I.E. MEAT CONSUMPTION). THE APRIL CONTRACT GOES OFF THE BOARD NEXT MONDAY (APRIL 30). WHEN THAT HAPPENS, THAT MAY OFFER SOME SUPPORT TO THE JUNE CONTRACT WHICH IS AT A $4.00 DISCOUNT.



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