Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
PORK COMPLEX
After 4 days of lower trade, lean hogs reversed Tuesday off the past 3 days lows and closed higher. But December lean hogs still closed $12.31 below the CME Lean Hog Index. Other than spec trading, it is going to be difficult to have hogs rally with cash pork falling day after day. Pork prices especially hams and loins have been dropping because US slaughter has been increasing and countries are buying less US pork going instead to Brazil. China has too much of their own pork. Tariffs hurt and countries have increased tariffs on US pork. Canada for instance has increased trade agreements with Brazil in order to buy less US pork.
CATTLE COMPLEX
Tuesday’s trade was a continuation of Monday and making up the loss from last Friday when President Trump announced increased beef imports. Volume was light to moderate . A majority of the trading on Tuesday were speculators buying live cattle and selling lean hogs with similar volumes on corresponding cattle and hogs on December, February and April.
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