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Thin cash trade in cattle and hogs is weakening the link between futures and cash markets, with negotiated cash trades falling from 50-60% to 20-25% of weekly cattle trade. The shift is uneven across major feeding regions, according to a panel at the Agricultural Commodity Futures conference.
Weaker futures-cash convergence raises basis risk for feeders and packers hedging livestock, which can widen price swings in live cattle and hogs.
hpj.comHPJ StaffApr 23, 2018Not enough comparable past events yet for a historical read.
Not 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.
