CME CASH FEEDERS Pxs
Don't know how many here watch LC & FC futures but feeder cash INDEX has been hitting all time highs going back a few weeks, seems as simple as supply is relatively scarce. Plus looking at 4$ vs. 7-8 $ corn gives impetuous.
Be aware, futures markets especially meats term (out months) price themselves in anticipation sentiment. This bull mkt in feeders going back 2-3 yrs have been over anticipated. Cash have had a literal bull market but long futures is even or maybe even a loss. Ie you are long AUG and need to roll ahead, AUG might be 130, OCT 134, you lose 4 in the roll. Do that 12 times and you can imagine.
My theory is when we get in the real groove, futures will be in a less contangoed structure, because no one will believe the price can be sustained, and long will win big. But I am good at being wrong!