Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
President Trump announced his administration is working on lowering the cost of beef and there will be a deal soon. “We did something, we worked our magic.” There were no details. The USDA has projected lower cattle numbers in 2026.
For 10 days live cattle futures have closed higher with the past 5 days making new contract highs. The RSI is around 73% does not indicate they are overbought just that longs are happier than shorts. At the same time live cattle spreads have been correcting and narrowing bear spreads and day after day live cattle/lean hog spreads are moving historically wide.
PORK COMPLEX
A reversal on the live cattle/lean hog spread could be enough power to reverse markets from the premium highs of December through Spring.
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