Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
It appeared that beef and cattle prices were beginning to level off, but Tuesday on the afternoon beef sales on larger than usual load movement choice beef dropped 3.19 and select down 1.22 back to the lows last Friday. When the market can’t absorb 161 loads, it’s a negative indicator especially with slaughter for the week so far is down 11,000 head compared to a week ago.
LEAN HOG COMPLEX
With spread traders dominating lean hogs, fewer producers are using the CME to hedge and going to long term packer contracts. It is also easily seen on the pork sold on the daily market. Buyers are contracting pork. Last week the average 5 daily negotiated load movement for pork sold on the daily market was 255.5 loads/day.
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