Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Feedlots continue keeping cattle in the feedyards longer and unless there is a big price increase in grains, they will continue to keep cattle on feed more days.
Trade volume was moderate Tuesday with live cattle lower. Showlist cattle and beef selling on the daily market are loosing money for the packer. They would rather buy fewer and heavier cattle. Keeping slaughter down is the way packers can keep beef from falling. With cattle weights 26 pounds above a year ago, packers could increase kill, but if they do, beef prices will fall.
LEAN HOG COMPLEX
Trade volume was moderate on Tuesday. February is moving to cash as it goes off the board this week and from April through December traders were bear spreading.
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