Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LEAN HOG COMPLEX
Lean Hog volume was very active. At 10:45 am there were close to 35,000 December Globex contracts traded and about 25,000 February and 11,100 April traded . The way it was trading indicated it was long liquidation with December mover higher than February and April so it wasn’t due to the roll. The roll would have December losing to February with traders selling December and buying February and April.
LIVE CATTLE COMPLEX
Live Cattle trade volume was fairly active. It was obvious traders were rolling out of December to February and some to April and few farther on out. Cattle gapped higher closing slightly above the 5 day moving average which was the first time since October 26th.
Demand in Feeder Cattle should increase as Midwest grain/cattle producers finished up field work and start to buy feeders to use grain which is at lower prices compared to when harvest began.
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