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Lean hog contracts fell sharply again on Monday after a brief rebound, with front months down triple digits. Cattle futures were mixed, with the front month lower and deferred months higher.
The Cattle on Feed report showed placements below estimates, though a lack of negotiated cash trade limited the rally.
Lower hog prices reduce returns for producers and can cut hog-related feed demand over time. Cattle prices stayed mixed as the friendlier placement data was offset by thin cash trade.
blog.loewenassociates.comFeb 26, 2019After 159 past bearish report events, Lean Hogs moved a median -0.2% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +1.0% over 20.
After 78 past neutral report events, Live Cattle moved a median +0.2% over 5 sessions (54% higher; middle half -1.0% to +1.0%), and +0.7% over 20.
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.
