Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Boxed beef prices were lower again on Tuesday. Choice rib primals continue to drag prices lower.
Cattle futures on light volume were higher on short covering and reversing spreads.
For January 2026 expect cattle weights to increase.
LEAN HOG COMPLEX
Packer profits in December have been good. Going into 2026 watch the difference between the CME Lean Hog Index and the CME Pork Cutout.
In 2026 look for heavier hogs. More hogs will also lower prices unless exports increase and with global competition and increasing hog production in Mexico, an increase in exports is likely not going to happen. Packers will need to increase chain speed.
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