Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Trade volume was light Tuesday. The Cattle on Feed report did little to peak interest. Spread traders are not doing much.
So far consumer prices haven’t changed.
Higher grain prices are going to keep grain producers that also feed cattle from feeding cattle especially with loan rates going up.
LEAN HOG COMPLEX
There is a little less than a month when October lean hogs expire. The difference between the lean hog index and cash is wide but there is still a lot of time for convergence.
Packer margins are negative. Unless margins improve, packers will kill the bare minimum – just enough to meet orders for pork.
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