Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
A year ago the January 2025 COF report had placements down 3%. One reason for the lower placements had to do with keeping 3% more heifers and heifer calves for breeding. For the January 2026 report expect the lower placements and expect an increase of heifer and heifer calve retention. Cow/calf producers had profitable years in 2024 and bigger profits in 2025.
LEAN HOG COMPLEX
Lean Hogs have been gaining on cattle going the opposite of a bearish Hogs and Pigs report and a friendly Cattle and Feed Report.
Volume and open interest has been increasing in lean hogs indicating speculative funds spreading inter and intra market spreads, spreads are bear spread and traders also have been buying hogs and selling cattle. The cattle/hog spread is an active spread.
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