COF Report Estimates Are Friendly
MORNING LIVESTOCK FUTURES OUTLOOK
Pre-report estimates for Friday’s COF report are friendly. But traders haven’t been as friendly as they are bear spread. Trade volume was light Thursday. Cash buying picked up Wednesday. Packers are buying cattle $1.00 lower on their terms. Cattle in the Southwest and Kansas are selling for $178.00 – $179.00 for all grades and Iowa/Minnesota $188.00 and $295.00 . Packers so far aren’t buying big numbers.
Lean Hog trade volume was light Thursday as futures reversed their recent downturn. October volume was 15,943 and December had 64070 contracts traded. The next spot month is October so this is the time specs take over. Packers may start to slow slaughter or as the cash market indicates and Lean Hog futures show, if they don’t slow it, they will continue to lower prices. Hog slaughter has been increasing and as it increases, pork prices are dropping faster than hog prices are going down.
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