Indications Beef Market to Move Higher
MORNING LIVESTOCK OUTLOOK
There are positive indications beef market will move higher as traders are turning bear spreading into bull spreads. As traders liquidate bear spreads, they buy short legs. Front months have been and still remain bear spread but as February begins moving into being the true spot month and goes into delivery, look for it to improve unless beef falls out of bed.
The pork carcass has moved a bit off lows but as of Tuesday the 5 day average remains below $80.00 with hams slightly above $80 and hams below $80.00. Pork is cheap and packers are controlling the kill to support pork prices because it is the only way they can. It would really help to see increasing exports but that is unlikely to happen unless something happens across the globe in hog growing countries where importing countries need US pork.
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