Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
One thing is for certain, live cattle and feeder cattle got rid of a lot of traders over the past week. Day after day open interest sunk. But it was to be expected. Cattle trading became way overdone. Speculators are the vast majority of trading and over the past 2 years open interest soared to new record highs.
It is too early to say if the top has been put in the cattle market, after all beef prices are strong and the estimates from the October COF Report indicate fewer cattle on feed and low placements and now at a time when there is strong beef demand.
LEAN HOG COMPLEX
Lean hog trade volume was very light Thursday. The CME Lean Hog Index remains in a slow steady down move while CME Pork Cutout Index is inching higher mostly on bellies.
Mexico at this time should be increasing imports for the holiday season. It is likely the reason bellies have moved up. It would be more convincing if Mexico was buying hams if hams turned up.
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