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Ridgway, IL | What I don't understand is how can last week cash trade at -3 yet Feb/April spread is at +1.... Why are there no deliveries?
There has to be a good reason why the cash seems artificially low... Either the clean up cost on those cattle are high (low yield, mud, poor quality, or?) or the ia/ne region is so saturated with cattle that they're having to knock down the values down to cover the freight back to the surplus western kill capacity. Or maybe just the packer is loading up on futures position in anticipation of higher cash in coming weeks.
Somthing just doesn't seem right with this picture, but I can't figure out what.
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Cattle
