Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Live cattle volume has increased as prices have moved higher. Traders are bull spreading as well as buying cattle and selling hogs.
For the year, cattle slaughter is almost a million head down compared to last year. A year ago for the same period for 2025 slaughter was down over a half a million head compared to 2024. 2026 is accelerating the decrease in inventory.
LEAN HOG COMPLEX
Lean hog trade volume was light again on Tuesday. Most of the trade was made up with spreading with current spreads narrowing. Also traders are selling lean hogs and buying live cattle.
Hog slaughter is doing the exact opposite of live cattle. Slaughter has been increasing and soon year to date slaughter will be higher compared to 2025 while cattle slaughter year to date is decreasing .
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