Written Commentary
MORNING LIVESTOCK OUTLOOK
Third day in a row where Choice beef prices dropped. It certainly looks like the buying for the holiday season is over, but there is the possibility buyers are waiting for prices to back off before they buy more. Christmas shopping is taking place and consumers look to be holding off buying on high priced cuts. On last week’s CPI Index, the index was down but food costs remained high.
Trade volume on Lean Hogs was light Monday. Trading mostly on December 2022 and February 2023 Lean Hogs. There is still about a month to go on December 2022 Lean Hogs. Traders have recently narrowed the spread between cash and futures and the CME Index has slowly been gaining on the CME Lean Hog Index. What the market really needs is to see a steady move to the upside for loins and hams and for exports to show that last week’s light exports were just a quick deviation to the strength in exports of the previous 4 weeks.
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