Downside Follow Through in Hogs
MORNING LIVESTOCK FUTURES OUTLOOK
Lean Hog futures had more follow through to the downside Monday and second day of contract low closes. December 2023 Lean Hogs came with 12 cents of breaking $70.00. Pork was higher on Monday only because bellies were up 11.21 in the morning and 9.62 in the afternoon. Loins were down .84 and hams were down 4.01 on afternoon sales. With the narrowing of pork index to the lean hogs index and the two top primal cuts down, along with lean hog futures premium to cash, it is indicating a negative outlook.
For a day after a COF report trade volume was light to moderate. The COF report was friendly. There are signs Choice boxed beef is turning up. The current Choice price is above the 5 day average for the second day. Choice primal ribs $6.75 and was the biggest move of Choice beef. The past shows primal ribs are the leader of the complex. Demand is strong for Choice Chucks and Rounds likely due to more Select cattle showing up and too many light cattle. The Choice to Select spread widening is another positive indicator. On top of it all Live Cattle futures are discount to cash and last week for a short slaughter week packers had to pay up to get cattle for this week.
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