Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Trade volume was light again on Tuesday. The heavy fund trading of 2025 and volatile trading in November has not entered the market so far in 2026.
So far there has been no cash markets. Beef demand moving into February is one of the slowest demand months for even with the slowdown due to the weather, packers are going to fight paying higher and will keep kill low this week.
LEAN HOG COMPLEX
Because futures hedging has been taken over by various packer pricing programs, such as formula and “other purchase arrangements” and packers owning hogs, the futures market is dominated by speculators and they are mostly using spreads. During the non-spot months they completely dominate the hog market.
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