Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Futures trade volume slowed Tuesday as Live Cattle closed lower for the second day after Friday’s new contract highs were made. Like Monday it was buyers taking profits. Since September 5th after coming back from Labor Day, Live Cattle moved steeply higher. On the December 2023 Live Cattle contract from a low of $254.75 and a close the day at $256.20 to Friday, September 15th the contract gained $11.92 from each day’s closing prices. It is a big move in 9 trading days, over a quarter of a million dollars on 50 contracts. Speculators taking profits is likely ahead of Friday’s Cattle on Feed Report. Boxed beef has been falling.
LEAN HOGS
Lean hog trade volume was light Monday and again on Tuesday. Spec traders, similar to the trading on Monday were unwinding bear spreads from December 2023 on out. October Lean Hogs settled at $84.85 as futures moves nearer to the latest index at $86.81. Pork prices have moved up over the past two weeks but it appears with the 5 day carcass average at $99.54, it has hit a resistance around $100 level as it did this summer.
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