Good morning everyone again! Here we are on a hump day, usually a sale day for me, but since we went to every other week, that is not the case.
I am sure you all have heard about the Defense Protection Act, that was used by Pres. Trump, in an attempt to make sure the processing facilities stay open. Of course, this order is getting met with resistance from the union labor leaders, and others that think it is unsafe.
Just wow. What a situation. Especially a situation when you are the leader of the Free world. The kind of decisions that our President has to make on an hourly basis, blows my mind. He has been carrying pressure from every side, and at the same time, fighting an unknown enemy. I think we can all empathize with the man, and his job
Now, the market news about the DPA being used on processing plants was released during market trading hours yesterday. I only saw it about 20 min before close, so not all the market had time to adjust in my opinion. It caught a bid just shortly after the news, but settled down on the close. This news hit most news outlets yesterday afternoon/this morning. I would think we could catch a bid here this morning.
The hog market has recovered pretty nicely in here the past few days. Even with all the news of hogs having to be euthanized, to make room for new feeders. I think most of the move with hogs was due to the amount of dollars they had fallen behind beef. That spread has moderated the last couple of days. There will be charts below just showing the daily closes of the June cattle, hogs, and the June-June Cattle/hog spread.
Sorry for this being too long. Thanks for taking the time to read. Check out the charts below.
Chart 1- Snap shot of world equity futures as of 619 am mst.
Chart 2- Daily close of Chart of June Hogs
Chart 3-Daily close chart of June Cattle
Chart 4- Daily close of June Cattle-Hog Spread