Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
LIVE CATTLE
Monday, the December Live Cattle/December Lean Hog spread made a new contract high. Tuesday, the spread reversed off the high. Volume trade on Live Cattle and Lean Hogs was close to the same throughout the day right up to the post trade. It is far too early to say if Tuesday were spreaders profit taking or simply quick profit taking.
Cattle feeders are getting a break on feed costs. Grain prices are down and in areas where wheat is available feeding wheat is helping reduce costs. Tuesday the December wheat/December corn spread settled below $1.00.
LEAN HOGS
Packers are pleased to see cash hog prices going down and pork prices going up. The CME Pork Index has widened out to $11.32 over the CME Lean Hog Index. Packers will try to push more hogs to slaughter especially as more pork isn’t putting price pressure on the daily pork market.
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