Seasonal Futures Patterns Are Changing
An article by Terrain
June is no longer the heaviest month of the year for fed cattle marketings due to a jump in days on feed. This, along with other factors, is disrupting the seasonal break late in the June contract for live cattle futures.
The extension of the spring rally through the life of the June contract has major ramifications for hedgers. It is forcing them to apply different strategies, using a softer hedge position than simply holding short futures positions for the summer.
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