Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Trade volume was moderate Wednesday as traders sold filling a gap on December from September 18th and September 21st. February on out are above upper side of gaps as traders have been bear spreading.
Compared to a year ago boxed beef prices are lower and they would be even lower if it wasn’t for rib sections. Rib primals are higher with demand for the December holidays in the US and exports to Japan and South Korea.
LEAN HOG COMPLEX
The CME Pork Carcass Index to the CME Lean Hog Index is widening favoring packers
Load movement on the daily pork carcass has also increased. Combined with an increase in slaughter this is showing some positive indicators. How lean hogs are trading now, may not indicate what will happen in December during a spot month.
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