Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
The USDA COF report was in line with analyst’s estimates. The placements show feedlots are building back inventory. Monday, Live Cattle and Feeder Cattle futures will follow cash cattle and boxed beef prices. The outlook into 2024 is bearish.
This week packers will take advantage of lower beef prices and short slaughter week to buy cattle lower. Last week cash cattle prices were down $2.00 to $4.00 in the Midwest and in the Southwest down $2.00.
LEAN HOGS
December 2023 Lean Hogs settled at $70.97 on December 17th. The CME Lean Hog Index is at $75.68 and $4.71 over December 2023 futures. There is almost a month before convergence has to take place. Trade volume was light all week.
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