Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Live cattle futures have shrugged off the negativity of higher gas prices as crude futures on Tuesday moved to new highs in moderate trade volume.
Beef prices started out higher. The way it is looking now, the increase in beef imports may not have driven prices lower in September and the first half of October but beef fell during the time when customers buy less beef. Now the home consumer is buying the lower beef cuts and ground beef and wholesalers including grocery stores and restaurants are buying the high priced cuts ribs and loins and stocking up for the December holiday parties, Christmas Eve, Christmas and New Year’s Eve.
LEAN HOG COMPLEX
Trade volume was light yesterday. As usual most of the trading was spreading. Compared to a healthy beef market, the pork market is sick. The only reason the carcass price was higher was due to a jump in bellies.
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