# Connection between futures and cash markets is becoming weaker - High Plains Journal

> 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.

- Date: 2018-04-23 · published 2018-04-23T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/65643-connection-between-futures-and-cash-markets-is-becoming-weaker-high-plains
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

Weaker futures-cash convergence raises basis risk for feeders and packers hedging livestock, which can widen price swings in live cattle and hogs.

## Read by commodity

- HOGS: neutral
- LCATTLE: neutral

## Sources

- hpj.com: https://hpj.com/2018/04/23/connection-between-futures-and-cash-markets-is-becoming-weaker/

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