Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE COMPLEX
Trading was fairly active with the market dropping for the 9th day since the peak on October 26th. From the close on October 26th to the close on November 5th December live cattle have dropped $16.80. Spread traders were also bear spreading as well as selling cattle and buying hogs. Friday is the start of the S&P roll (Goldman Sachs). Over the next 5 days traders will be liquidating/selling December and moving mostly to February and April.
Cash beef prices have been weakening but with some support from rib primals.
LEAN HOG COMPLEX
Technically, lean hog futures are becoming oversold, but there is a long side to hogs with spread traders short live cattle and long lean hogs which traders have a large position. But intra market lean hogs have wide bear spreads. Be watchful for a reversal.
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