# Weekly Livestock Comments for April 27, 2018 | Ohio BEEF Cattle Letter

> Fed cattle traded $2 to $3 higher on a live basis, mainly at $124, and the five-area weighted average was $120.84 live. Live cattle futures for June were trading about $17 per hundredweight below cash, a record strong basis.

- Date: 2018-05-02 · published 2018-05-02T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/4609-weekly-livestock-comments-for-april-27-2018-ohio-beef-cattle-letter
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md)

## Why it matters

A wide cash-over-futures basis encourages feeders to hedge and signals cash prices should stay firm into convergence. Strong cash fed cattle prices support feeder cattle values.

## Read by commodity

- LCATTLE: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| LCATTLE | 2018-05-02 | 5 | -6.7% | -3.2 | June futures trading about $17 below cash shows futures were discounting expected bearish supply and sentiment even as cash rose, explaining futures weakness. |
| LCATTLE | 2018-04-30 | 1 | -6.8% | -10.3 | Record futures discount of about $17/cwt to cash shows futures were far out of line with cash, so the drop likely reflects a repricing of heavy June supply expectations. |

## Sources

- u.osu.edu: https://u.osu.edu/beef/2018/05/02/weekly-livestock-comments-for-april-27-2018/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.