LC Futures Driving Cash Down?
MORNING LIVESTOCK FUTURES OUTLOOK
Is the steep decline in Live Cattle futures driving cash cattle down? If futures are driving down cash it is due to speculators mainly liquidating bear spreads. Longs began liquidating in earnest mid-October according to the Commitment of Traders reports. Live Cattle have been bear spread and recently spreads have narrowed indicating liquidation. On top of it, beef prices have been dropping. The boxed beef market is being supported with rib and loin primals with daily sales that have been light.
Pork prices have been bouncing over the past couple of weeks and this week compared to a last Friday the 5 day carcass price average has gained 97 cents, nothing to excite the market. Very good exports are helping to keep the increase in hog slaughter in 2023 from a more severe downturn in prices for hogs and pork.
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