"Shootin' The Bull" Commodity Market Comments...
For Thursday, April 18th
Live Cattle: What a great way to end the week. Fats and feeders both higher on the week. The polar opposites of cash fats at the highs for the year and feeders at the low for the year, coupled with discounted fat contracts and perceived excessive premiums in feeder cattle, makes for some unbelievable work to be done converging these basis.
Feeder Cattle: I've preached my sermon all week. I plan on stepping up to the pulpit again Monday. I may be slapped, beaten, bloodied, or murdered by these recommendations, but I can not for the life of me see how the basis won't converge as it has since inception of the feeder cattle futures contract. The only thing I can see would be that convergence does take place, but prices are are above the current levels. If this were to materialize, I think it will be difficult to complain too much having made the basis spread and your cattle having increased in price. Time will tell.
Lean Hogs: Here is the path to the webinar that was produced on 4/16/19: WEBINAR
Corn: Grains are weak. Grains are anticipated to remain weak.
Crude: Energies held their own this week. I anticipate energies to remain firm.