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DTN analyst John Harrington says June live cattle futures slipped below 114 for the first time since May 2012. He argues the futures sell-off is overdone, since beef supplies will rise only modestly above the early summer of 2015.
He describes the decline as a larger seasonal swing than typical.
The futures decline reflects market sentiment more than a major supply shock, so cash prices may find support if supplies stay near forecasts. Buyers should watch whether futures discounts to cash narrow.
northernag.netJohn HarringtonApr 30, 2016Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
