Written Commentary
MORNING LIVESTOCK FUTURES OUTLOOK
CATTLE COMPLEX
Similar to Monday, live cattle futures opened lower and then turned around to close higher. Spread traders have a lot to do with it. Live cattle are bull spread.
When slaughter is as low as it is now, what will break the market? There are fewer cattle on feed and fewer cattle are being placed. Because of the light kill, beef prices are rising.
LEAN HOG COMPLEX
The high prices for beef are supportive for pork. Consumers are expected to increase pork consumption because it is much cheaper than beef. Pork is also competing with poultry. Pork exports are strong.
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