Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Traders on Wednesday were selling outright futures but mostly bear spreading and selling cattle and buying hogs. Open interest is increasing as shorts are added.
Choice beef was higher yesterday morning but turned lower on afternoon sales due select beef was lower because imported beef is cutting into prices. Going forward, the choice/select difference will widen favoring choice even when all beef drops.
LEAN HOG COMPLEX
The current discount on October lean hogs is giving it some support, but most support is and has been coming from spread traders buying lean hogs and selling live cattle.
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