Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
On Wednesday live cattle futures broke to the 22 day moving average and Thursday they moved up to the 10 day moving average which now resistance. It has not been coincidental how live cattle have been trading this week. as funds and large speculators roll October to December, the majority of trade volume on Thursday was in the two months.
Feeder cattle are bull spread. Except for the dip on futures in September with short and long hedge traders liquidating, cash markets remain strong.
PORK COMPLEX
With analysts expecting increasing US pork consumption it is positive for pork. However with US pork exports down and likely to stay down, the weak exports will have negative influence. As of the last hogs and pigs report, the inventory is expected to increase by 1%. Currently, much of the strength in lean hog futures is coming from spreaders buying lean hogs and selling cattle.
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