Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
New contract highs were made on live cattle. Trade volume was slow to moderate Wednesday. A good part of Wednesday’s trade was spreading, buying live cattle and selling lean hogs. It wasn’t coincidental the volume on Globex August lean hogs was 25,813 contracts and Globex August live cattle volume was 25,999 or October lean hog volume was 22,524 and October live cattle volume was 22,587 with December hog and December cattle close to the same volume.
PORK COMPLEX
Revising down slaughter has become a normal part of the packers slaughter. There aren’t going to kill any more hogs than they absolutely need to kill. They do not want to own pork inventory. Revising down is a way to make the cutout look better. It’s telling us they are bearish pork prices.
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